Arkansas Wetland and Riparian Zones Tax Credit Program

This state income tax credit covers out-of-pocket costs for creating wetlands or restoring and conserving riparian zones, such as site prep, permanent vegetation, streambank stabilization, berms and water control structures. Credits run up to $50,000 per project, claimed at up to $5,000 a year. Projects must be approved by the Department before work starts and maintained for 10 years.

• Any taxpayer (individual, partnership, LLC, S Corporation, or Corporation) whose project is certified and approved by the Department

• Projects that restore/improve riparian zones, create wetlands, or conserve riparian habitat (Title XIII rules)

• Not eligible: projects required as mitigation under state or federal law; cannot also claim the same project under the Water Resources Conservation Development Incentives Act of 1985

Credit up to $50,000/project, max $5,000/year over up to 10 years; complete within 3 years; maintain 10 years.

Published amounts: Up to $50,000 per project; no more than $5,000 may be claimed in any one tax year, over a maximum of 10 years; limited to actual out-of-pocket project costs. Administrative fee: 3% of the total estimated project cost.

Submit a completed application and a 3% administrative fee to the Department; staff schedule a preconstruction site visit; eligible applicants receive a Certificate of Tax Credit Approval and may proceed. After completion, request a final inspection and submit receipts to receive a Certificate of Project Completion, which must be filed with the next tax return.

Deadline text on the page: No deadline; projects must be approved before activities begin and completed within three years of the Certificate of Tax Credit Approval.