Arkansas Code § 26-51-1009 - Credit Granted -- Land Leveling for Water Conservation

(a) There shall be allowed a credit against the tax imposed by the Income Tax Act of 1929, ยง 26-51-101 et seq., to an approved applicant for agricultural land leveling to conserve irrigation water.

(b) (1) The tax credit allowed to each approved applicant shall not exceed the lesser of ten percent (10%) of the project cost incurred or twenty seven thousand dollars ($27,000).

(2) (A) The amount of tax credit allowed to each approved applicant per project that may be used for a taxable year may not exceed the lesser of:

(i) The amount of individual or corporate income tax otherwise due; or

(ii) Nine thousand dollars ($9,000).

(B) If the approved applicant is a pass-through entity such as a partnership, a limited liability company taxed as a partnership, a Subchapter S corporation, or a fiduciary, the amount of tax credit that may be used for a taxable year shall not exceed the lesser of:

(i) The aggregate amount of individual or corporate income tax otherwise due by all members of the pass-through entity; or

(ii) Nine thousand dollars ($9,000).

(3) Any unused tax credit may be carried over for a maximum of two (2) consecutive taxable years following the taxable year in which the credit originated.

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Last modified: November 15, 2016