The Arkansas Department of Agriculture Natural Resource Division is looking to partner with landowners on conservation tax credits focused on conserving the quantity and quality of Arkansas’s water. The two primary programs available to landowners are the Water Conservation and Development Tax Credit and the Wetland and Riparian Improvement Tax Credit.
The Water Resource Conservation and Development Incentives Act enacted in 1995 established a tax credit program to encourage water users to invest in (1) the construction of impoundments to use available surface water, thereby reducing their dependence on groundwater; (2) the conversion from groundwater use to surface water use; and (3) land leveling, water meters and other irrigation automation systems to conserve water use.
The Arkansas Private Wetland Riparian Zone Creation and Restoration Incentive allows a credit against the tax imposed by the Arkansas Income Tax Act for any taxpayer engaged in the development or restoration of wetlands and riparian zones. The program is designed to encourage private landowners to restore and enhance existing wetlands and riparian zones and, when possible, create new wetlands and riparian zones.
More below:
https://www.agriculture.arkansas.gov/natural-resources/divisions/water-management/tax-credits/