State Incentive

Equity Investment Tax Credit


The State Equity Investment tax credit earned may be used to offset 50% of the investor’s Arkansas income tax liability in any one tax year; unused credit may be carried forward for up to nine years or the tax credit may be sold upon approval by AEDC.

Act 566 of 2007 provides an income tax credit to persons or companies investing in certain types of eligible businesses. Award of this credit shall be at the discretion of the Director of the Arkansas Economic Development Commission. The credit is equal to 33 1/3 % of the actual purchase price paid for the equity interest to the business. The credit is limited to 50% of the state income tax or premium tax liability of the taxpayer after all other credits and reductions in tax have been calculated. Any unused credits may be carried forward nine (9) years.

To claim the credits authorized, attach to the tax return a copy of the Certificate of Tax Credit issued by the Arkansas Economic Development Commission.

For information regarding application into the Equity Investment Tax Credit Program, contact Arkansas Economic Development Commission at (501) 682-1121 or visit their website at