Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 5 - STATE TAXES (§§ 26-50-101 — 26-65-108) › Chapter 51 - INCOME TAXES (§§ 26-51-101 — 26-51-2804) › Subchapter 5 - TAX CREDITS GENERALLY (§§ 26-51-501 — 26-51-517) › Section 26-51-515 - Work on cold cases by retired law enforcement officers

(a)
(1)
Subject to the restrictions stated in this section, there is allowed an income tax credit against the income tax imposed under this chapter for up to three thousand five hundred dollars ($3,500) for work performed by the taxpayer on behalf of the Division of Arkansas State Police to investigate one (1) or more cold cases.
(2)
(A)
A taxpayer who works at least one thousand (1,000) hours investigating one (1) or more cold cases on behalf of the division during the tax year may claim the full amount of the credit allowed under subdivision (a)(1) of this section.
(B)
A taxpayer who works less than one thousand (1,000) hours investigating one (1) or more cold cases on behalf of the division during the tax year may claim a pro rata share of the credit allowed under subdivision (a)(1) of this section based on the number of hours the taxpayer worked investigating one (1) or more cold cases on behalf of the division during the tax year compared to one thousand (1,000) hours.
(b)
At the discretion of the division, an individual may work as a:
(1)
(A)
Volunteer to investigate one (1) or more cold cases on behalf of the division.
(B)
An individual who works as a volunteer under this subsection is not an employee of the division, and the only benefit accruing to the individual is the tax credit allowed under this section; or
(2)
Temporary or part-time employee of the division for an hourly rate determined by the division, not to exceed the rates of pay provided in the Uniform Classification and Compensation Act, §
21-5-201
et seq.
(c)
The amount of the income tax credit under this section that may be claimed by the taxpayer in a tax year shall not exceed the amount of income tax due by the taxpayer.
(d)
Any unused income tax credit under this section may be carried forward for two (2) consecutive tax years following the tax year in which the income tax credit was earned.
(e)
(1)
To be eligible to claim a tax credit under this section, a taxpayer shall:
(A)
Be a retired law enforcement officer; and
(B)
Apply to the division for an eligibility certificate, which shall be attached to the taxpayer's return for the tax year in which the tax credit is claimed.
(2)
The division shall maintain an ongoing record of the eligibility certificates awarded under this section each fiscal year.
(3)
The division shall issue eligibility certificates for the number of hours worked by each taxpayer for the tax credit allowed under this section only up to a total of twenty-five thousand dollars ($25,000) for all taxpayers in each fiscal year on a first-come, first-served basis.
(f)
The Director of the Division of Arkansas State Police shall:
(1)
Promulgate rules to implement this section; and
(2)
Consult with the Department of Finance and Administration in promulgating rules under this section.
Added by Act 2021, No. 841,§ 1, eff. for tax years beginning on or after January 1, 2022.