Schedule AR1000TC — Tax Credits and Business Incentive Credits Instructions

# preamble

INSTR INSTRUCTIONS FOR AR1000TC LINE 1. A credit of up to $50.00 per taxpayer ($100.00 for a joint return) is allowed against your Arkansas individual income tax liability for cash contributions made by the taxpayer(s) to one of the following:

 A candidate seeking nomination or election to a public oႈce or to the candidate¶s campaign committee 

 An approved political action committee as defined by Arkansas Code Annotated †  

 An organized political party as defined in Arkansas Code Annotated †  For the purposes of this credit ³public oႈce´ means any oႈce created by or under the authority of the laws of the State of Arkansas or a subdivision thereof that is filled by the voters q'$ "1$#(3 #.$2 -.3 ~//+8 3. contributions made to candidates for federal offices q'$ ".-31(!43(.- ,423 !$ ,~#$ !8 ^/1(+ NRI 2026 to be claimed on the 2025 tax return. Enter the amount of allowable State Political Contributions Credit s on this line The allowable credit s cannot exceed  for filing status    or  or  total for filing status  or  LINE 2. The purpose of the other state tax credit is to prevent Arkansas residents from being taxed twice on income earned outside of the state of Arkansas. Nonresidents cannot claim this credit on their Arkansas return. The credit amount is the lesser of the two (2) amounts below: 1. Either the actual tax liability amount from outside states, or   The other states¶ taxable income taxed at Arkansas rates To calculate #2 listed above, there are three (3) steps: p3$/ NW Calculate on an ARF what the taxpayer¶s Total Tax line  of the ARF would be with everything included as you would normally²Arkansas and the other states¶ incomelosses included p3$/ OW Temporarily redo the ARF but with all the other states¶ incomelosses removed Make a note of the new Total Tax amount. p3$/ PW Subtract the Total Tax in Step  from the Total Tax in Step  This lets you see exactly how much aႇect the other states¶ income had on AR taxes this is how much the tax would be on the outside income if added to the Arkansas income, and calculated at Arkansas income tax rates. klqbW It is important to keep in mind that some deductions on the ARF return are directly linked to income  and might need to be adjusted in Step  of the above calculations An example would be other states¶ gambling losses. YOU MUST ATTACH TO YOUR ARKANSAS RETURN A SIGNED COPY OF THE TAX RETURN(S) YOU FILED WITH THE OTHER STATE(S). A tax credit is allowed for a resident shareholder¶s pro rata share of any net income tax paid by a Sub S Corporation to a state that does not recognize Sub S Corporation status The State of Mississippi enacted a special tax that applies exclusively to gambling winnings This tax is separate and distinct from Mississippi¶s income tax As such an Arkansas taxpayer cannot claim a credit against their Arkansas income tax liability for payment of the gambling winnings tax to the State of Mississippi LINE 3.

The Adoption Expense Credit allowed is twenty percent EOMBF .% 3'$ ~,.4-3 ~++.6$# .- 8.41 %$#$1~+ return. A copy of federal Form 8839 must be attached to your Arkansas return. LINE 4. Enter the allowable Phenylketonuria Disorder Credit Attach Form AR LINE 5. Enter the allowable amount Attach Certificate of Birth resulting in stillbirth maximum credit is  per stillborn birth. Total credit cannot exceed amount of Total Tax). ARTC Inst Page  R 

INSTR INSTRUCTIONS FOR AR1000TC (CONT.) LINE 6. Enter the allowable amount  Use worksheet for Additional Tax Credit for Qualified Individuals to determine allowable amount. LINE 7. Multiply number of dependents with developmental disabilities by  and enter the total Individuals must qualify for the credit See ARDD formerly Form ARRC instructions for eligible disabilities and definition of dependent(s).

On lines AF enter the name and social security number for each dependent for which you are claiming the credit for Individuals with Developmental Disabilities klqbW You must attach Form ARDD formerly Form ARRC to the return if this is the first year that

you claim the Credit for Individuals with Developmental Disabilities Any certification that was valid on January   and all new certifications going forward from that date will have no expiration date LINE 8. Enter the total allowable credit s claimed Enter the Tax Credit Code s and amount s on lines A to F If the primary andor spouse are claiming credits earned by a passthrough entity then the FEIN of that entity must also be entered Enter the total amounts from lines A to F in box  A copy of the tax credit certificate s

or appropriate documentation associated with the tax credit(s) claimed must be attached to AR1000TC.

klqbW Recent legislation may have amended increased or extended some of the provisions for Tax Credits Use of any credit is subject to the limitations and carryover provisions provided by the respective Arkansas statute. A summary of the Tax Credit Programs can be found at 666K#%~K~1*~-2~2K&.5 If you have questions please contact the Tax CreditsSpecial Refunds Section at  

# TAX CREDIT TYPES

Code Credit Type Code Credit Type 0001….Advantage Arkansas «Water Impounded Within Critical «A൵ordable Housing «Water Surface Outside Critical «$53OXV «Water Surface Inside Critical «AR Plus  TechnologyBased  «Water Surface Inside CriticalIndustrial or Commercial «AR Plus  TechnologyBased «Water Land Leveling «AR Plus  TechnologyBased «Wetland Riparian Zone CreationRestoration  «Child Care Facility «Wetland Riparian Zone Conservation «Coal Mining Producing and Extracting «Central Business Improvement District Rehab and Dev «Delta Geotourism «Biodiesel Incentive Credit «Equipment DonationSale «Recycle Equipment for Steel Manufacturer «Equity Investment Incentive «RecycleSteel Manufacturer Amendment  Project Act  «Existing Workforce Training «RecycleExpansion Project Act  «Family Savings Initiative Act «RecycleSteel MFG Specialty Products Facility M Act  «Historic Rehabilitation  «RecycleSteel MFG Specialty Products Facility M Act   «Low Income Housing «RecycleSteel MFG Specialty Products Facility M Act  «Public Roads Incentive Apprenticeship Program «Research Park Authority Major Historic Rehabilitation «Research and Development with Universities Arkansas Wood Energy Products and Forest Maintenance «InHouse Research Income Tax Credit Railroad Modernization «InHouse Res by Targeted Business Income Tax Credit Motion Picture «InHouse Res Area of Strategic Value Income Tax Credit Retired Law Enforcement Cold Case «Qualified Research Philanthropic Investment «Tourism Development  Waterways Investments  «Tuition Reimbursement Program Natural State Initiative NSI Tourism Development «Targeted Business Payroll Sustainable Aviation Fuel «Venture Capital Investment Arkansas Wood Energy Products and Forest Maintenance Expansion «Waste Reduction Reuse or Recycle Equipment Relocating Corporate Headquarters «Water Impounded Outside Critical Modernization and Automation ARTC Inst Page  R