- Arkansas Economic Development Commission (AEDC) – State agency overseeing Arkansas economic development programs.
- Qualified Research Expenditures (QREs) – Expenses eligible for research tax credits.
- In-House Research – R&D activities conducted within the company.
- Targeted Business R&D Tax Credit – Incentives for specific strategic business sectors.
- Research Area of Strategic Value – R&D fields deemed economically important by Arkansas.
- University-Based Research – R&D conducted in partnership with universities.
- Financial Incentive Agreement – Contract detailing terms of state tax incentives.
- Director of the AEDC – Head official managing Arkansas economic development.
- Arkansas Science and Technology Authority (ASTA) – Promotes scientific research and technological innovation.
- Arkansas Code § 15-4-2708 – Statute governing Arkansas research and development incentives.
- Consolidated Incentive Act of 2003 (Act 182) – Legislation establishing various Arkansas business incentives.
- Base Year – Reference year for calculating incremental R&D growth.
- Incremental Amount – Increase in R&D spending over base year.
- Qualified R&D Salaries – Wages paid to employees performing qualified research.
- Qualified Wages – Employee compensation eligible for tax credit calculation.
- Qualified Services – Tasks supporting or supervising qualified research.
- Qualified Research Program – Approved project meeting state R&D criteria.
- Qualified Educational Institution – Accredited college or university conducting research.
- Donation or Sale Below Cost – Providing equipment to schools for tax credit.
- New Machinery and Equipment – Tangible assets purchased for research purposes.
- Department of Finance and Administration (DFA) – Agency managing Arkansas state revenue and taxation.
- Income Tax Credit – Direct reduction of state income tax liability.
- Taxable Wages and Benefits – Employee earnings subject to state taxation.
- Applied Research – Practical application of scientific principles to products.
- Basic Research – Theoretical study to advance scientific knowledge.
- Process of Experimentation – Trial and error to eliminate technical uncertainty.
- Technological in Nature – Relies on physical, biological, or computer sciences.
- New or Improved Business Component – Product or process created or enhanced.
- Business Component – Product, process, software, formula, or invention.
- Qualified Business – Entity eligible to claim state tax incentives.
- Strategic Research and Development – R&D in high-priority state economic sectors.
- Maximum Tax Credit Cap – Limit on total credits claimable annually.
- Tax Credit Carryforward – Unused credits applied to future tax years.
- In-House Research Facility – Company-owned location dedicated to research activities.
- New Research Facility – Recently constructed site for conducting R&D.
- Existing Research Facility – Established location currently used for research.
- Eligible Expenditures – Costs qualifying for specific tax credit programs.
- Project Plan – Document outlining research goals and methods.
- Contractual Employee – Worker hired via contract, not permanent staff.
- Sellable Credits – Tax credits that can be sold/transferred.
- Non-Combination Rule – Restriction on combining different tax incentive programs.
- Qualified Research Activities (QRAs) – Actions constituting eligible R&D work.
- Four-Part Test (Federal IRC § 41) – Federal criteria determining qualified research eligibility.
- Advanced Materials and Manufacturing Systems – Tech sector focused on production innovation.
- Biotechnology, Bioengineering, and Life Sciences – Sector involving biological systems and medical research.
- Information Technology Sector – Industry focused on computing and software development.
- Transportation Logistics Sector – Industry managing movement of goods and resources.
- Bio-Based Products – Goods derived from renewable biological resources.
- Annual Certification – Yearly verification required to maintain incentive eligibility.
- Net Tax Liability Offset – Credits reducing the final tax amount owed.
