Arkansas business incentive credits are earned through approved programs, but they are claimed on the tax return. Form AR1100BIC is the schedule that carries them onto the corporation income tax return (AR1100CT) or the pass-through entity tax return (AR1100PET). The 2025 version is revision 6/27/2025.
The schedule is short. Five rows, each a credit code and an amount, then a total. Most of the page is the list of codes.
Filling it in
At the top: the entity’s name and FEIN, and the parent’s name and FEIN if the return is filed for an Arkansas consolidated group. Then up to five credits, each as a four-digit BIC code and an amount in whole dollars. Line 6 adds them up.
The total goes to Schedule B, line 3, of Form AR1100CT, or to line 8 on page 1 of Form AR1100PET. The certificates for each credit are attached to that return, not left with the schedule.
Consolidated groups need one per member
In an Arkansas consolidated group, every eligible member claiming a credit, the parent included, completes its own AR1100BIC. Those member schedules are then combined on the group’s AR1100BIC, and the group total goes on line 6 of the group’s form and onto the group return.
The credit codes
The codes are not consecutive. Some numbers are missing from the 2025 list. A selection:
| Code | Credit |
|---|---|
| 0001 | Advantage Arkansas |
| 0002 | Affordable Housing |
| 0003 to 0006 | Ark Plus, and Ark Plus 50%, 75% and 100% Technology-Based |
| 0009 | Child Care Facility |
| 0016 | Existing Workforce Training |
| 0018 | Historic Rehabilitation |
| 0023 to 0025 | In-House Research, In-House Research by Targeted Business, In-House Research Area of Strategic Value |
| 0026 | Qualified Research |
| 0030 | Targeted Business Payroll |
| 0034 | Waste Reduction, Reuse or Recycle Equipment (3-year carryforward) |
| 0035 to 0042 | Water and wetland credits, from impounded water outside critical areas to riparian zone conservation |
| 0044 | Biodiesel Incentive Credit |
| 0051 | Apprenticeship Program |
| 0052 | Major Historic Rehabilitation |
| 0055 | Railroad Modernization |
| 0056 | Motion Picture |
| 0062 | Sustainable Aviation Fuel |
| 0064 | Relocating Corporate Headquarters |
| 0065 | Modernization and Automation |
The recycled steel credits are split by project: 0045 to 0050 cover recycle equipment for a steel manufacturer, the Act 862 amendment project, the Act 1046 expansion project, and specialty products facilities at $4 million, $5 million and $6.5 million under Act 1046.
What has to go with the claim
- The certificate for each credit, attached to the AR1100CT or AR1100PET.
- In a consolidated group, a separate AR1100BIC for each member claiming a credit, behind the group’s combined one.
- The total on Schedule B line 3 of the AR1100CT, or on page 1 line 8 of the AR1100PET.
- Codes from the 2025 list. The form notes that recent legislation amended, increased or extended some programs.
Questions about a credit
DFA directs questions to its Tax Credits/Special Refunds Section at (501) 682-7106. A summary of the incentive programs is on dfa.arkansas.gov.
Official PDF: Form AR1100BIC — Official PDF (dfa.arkansas.gov)
Sources
- Arkansas Department of Finance and Administration, AR1100BIC Schedule of Business Incentive Tax Credits, 2025, R 6/27/2025 (dfa.arkansas.gov)