Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-1001 - WATER CONSERVATION INCENTIVES
Rule 1.26-51-1007 - Credit for Abandoning or Reducing the Extraction of Groundwater

The income tax credit for abandoning or reducing the extraction of groundwater and utilizing surface water in lieu of groundwater is issued and verified through the Arkansas Soil and Water Conservation Commission. The Commission will issue a "Certificate of Tax Credit Approval" and "Certificate of Completion for Tax Credit" in the same manner as outlined in 1. 26-51-1006. In order for the taxpayer to claim this credit, the appropriate certificate must be attached to its 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 two (2) consecutive tax years following the tax year in which the credit originated.

If the corporation is claiming more than one (1) income tax credit, the corporation should specify in which order the credits should be claimed. If not specifically stated, the Department will utilize the credits in the order which it perceives to be to the best advantage of the corporation.