1.26 Ark. Code R. 51-1006
The income tax credit for water resource projects, water impoundments and water control structures is issued and verified through the Arkansas Soil and Water Conservation Commission. The Commission, upon acceptance and approval of the project, will issue a "Certificate and Tax Credit Approval" document to the taxpayer. In the year the project is completed, the Commission will issue the taxpayer a "Certificate of Completion for Tax Credit" document.
In order to claim the income tax credit prior to the completion of the project, the taxpayer must attach the "Certificate of Tax Credit Approval" to its income tax return. If the project has been completed, the "Certificate of Completion for Tax Credit" must be attached to the taxpayer's income tax return. The income tax credit is limited to nine thousand dollars ($9,000) or the amount of the taxpayer's computed tax liability for the tax year, whichever is the smaller amount. Any unused income tax credit may be carried forward for up to nine (9) consecutive tax years following the tax year in which the credit originated.
If a Certificate of Completion is not issued by the Commission within three (3) years of the Certificate of Tax Credit Approval date, the taxpayer will be subject to an assessment by the Corporation Income Tax Section for the repayment of those credits previously taken, including interest.
Any water resource or surface water conservation project approved prior to 12/31/95 must comply with the provisions established under the Water Resource Conservation and Development Incentives Act of 1985. The 1985 Act limited the credit to $3,000.00 per year with a ten (10) year carryforward allowed.
1.26 Ark. Code R. 51-1006