The Arkansas Recycling Equipment Tax Credit Program

The Recycling Equipment Tax Credit Program, created by Act 654 of 1993, encourages recycling by allowing Arkansas taxpayers a 30 percent state income tax credit for the purchase of equipment used exclusively for collecting, separating, processing, modifying, converting, or treating solid waste or for manufacturing products containing at least 50 percent recovered materials of which at least 10 percent is post-consumer waste. The cost of installation is also eligible.

The tax credit reduces a participant's Arkansas income tax amount due by 30 percent of the amount paid for eligible recycling equipment and installation. For example, if the total cost for equipment and installation is $10,000, the participant can subtract $3,000 from the amount he owes the state.

To receive the tax credit, you must submit an Application for Certification of Eligibility to DEQ with the required invoices and information detailed in the application instructions.

If you expect to purchase recycling equipment and want to find out if the purchase will meet the tax credit requirements, you may submit an Application for Preliminary Approval to DEQ at least 30 days before making the purchase. Applications for both the Certification of Eligibility and Preliminary Approval must be submitted electronically through E&E's ePortal system.