State Incentive

Recycling Equipment-Tax Exemptions/Reductions

Summary

Income tax credit for the purchase of equipment (and installation by outside contractors) used exclusively for reduction, reuse, or recycling of solid waste material for commercial purposes.

Expenditures eligible for tax credit certification:

  • waste reduction, reuse or recycling equipment used exclusively for waste reduction, reuse or recycling of solid waste for commercial purposes, whether or not for profit, including the cost of installation of such equipment by outside contractors;

  • waste reduction, reuse or recycling equipment must be used exclusively in the collection, separation, processing, modification, conversion, treatment or manufacturing of products containing at least fifty percent (50%) recovered materials, of which at least ten percent (10%) of the recovered materials shall be post-consumer waste;

  • the cost of replacing existing waste reduction, reuse or recycling equipment shall be eligible for certification only if the replacement provides greater capacity for recycling or provides the capability to collect, separate, process, modify, convert, treat, or manufacture additional or a different type of solid waste.The amount of the tax credit shall equal 30% of the cost of equipment and installation costs deemed eligible by the Arkansas Department of Environmental Quality. Credits may be carried forward for three consecutive years following the taxable year in which the credits accrued.

  • Taxpayers receiving credit under this Act for the purchase of machinery and equipment shall not be entitled to any other state or local tax credit or deduction based on the purchase of the machinery or equipment, except normal depreciation.