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State program

Arkansas In-House Research and Development Tax Credit

Incentives for in-house research, university-partnered research and targeted-business research, administered through the Arkansas Economic Development Commission.

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  • Offset only
  • Pre-approval required
  • Transferable

Last reviewed October 2026

Program overview

Arkansas structures its research incentives around several programs under the Consolidated Incentive Act. The in-house research credit rewards qualifying companies for increases in research spending, while separate programs support research conducted in partnership with Arkansas colleges and universities and research performed by businesses in state-designated target sectors such as advanced materials, biotechnology and information technology. Most programs require an incentive agreement executed before the qualifying expenditures are made.

Eligibility

Businesses approved by the Arkansas Economic Development Commission conducting research in Arkansas. Targeted-business and university-research programs have their own certification requirements.

Benefits

Credit against Arkansas income tax; targeted-business credits are transferable and may be sold, providing cash to pre-revenue companies.

Caps, deadlines and forms

Caps and limits

No annual cap is stated for this program.

Deadlines

Claimed on the annual return; no separate application deadline is stated.

Forms

Filing forms are listed by the revenue authority: official source (opens in a new tab).

Arkansas IDR questions

What an examiner is likely to ask about this credit. S1–S7 apply to every state claim; the rest come from this program's own rules.

  1. S1Confirm the research was physically performed within Arkansas.
  2. S2Provide the Arkansas qualified research expense calculation and base amount.
  3. S3Reconcile Arkansas expenses to the federal Form 6765.
  4. S4Show how wages and supplies were apportioned between Arkansas and other locations.
  5. S5Provide the Arkansas return and credit schedule for each year claimed.
  6. S6Show the carryforward schedule for unused Arkansas credits.
  7. S7Confirm the entity claiming the credit is the entity subject to Arkansas tax.
  8. AR-1Provide the pre-approval, certification or application filed for the Arkansas credit, with its filing date.
  9. AR-2Document any Arkansas credits transferred or sold, with the approval and the buyer.

Draft questions for illustration, reviewed by a specialist before any engagement.

Common weak spots

  • Expenses for research performed outside Arkansas included in the Arkansas claim.
  • Missing or late pre-approval: the application or certification was not in place when required.
  • Credit transfers not documented with the required approval.
  • Base amount computed from incomplete historical records.

See how your claim holds up

The mock audit drafts these questions for your own claim and scores the evidence behind each answer.

Run a mock audit for Arkansas

Information on this page is general in nature, not tax advice. Program details change frequently; always confirm current rules with the relevant revenue authority or engage a specialist before acting. Last reviewed October 2026.

Find out what your research actually qualifies for

A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.

Free R&D mock audit: completely free. Book a call or email hello@creditarmor.ai for a login.

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