Arkansas Code of 1987 (2023) › Title 15 - NATURAL RESOURCES AND ECONOMIC DEVELOPMENT (§§ 15-1-101 — 15-76-324) › Subtitle 1 - DEVELOPMENT OF ECONOMIC AND NATURAL RESOURCES GENERALLY (§§ 15-1-101 — 15-14-108) › Chapter 5 - ARKANSAS DEVELOPMENT FINANCE AUTHORITY (§§ 15-5-101 — 15-5-1908) › Subchapter 14 - VENTURE CAPITAL INVESTMENT ACT OF 2001 (§§ 15-5-1401 — 15-5-1416) › Section 15-5-1406 - Tax credits

(a)
The State of Arkansas shall issue income tax credits that may be used to reduce the tax liability of a person, firm, or corporation.
(b)
(1)
Income tax credits transferred by the Arkansas Development Finance Authority shall only be used to offset payment of reported state income tax liability and are not refundable.
(2)
Unused tax credit may be carried forward for five (5) additional taxable years after the taxable year in which the tax credit was first used.
(b)
Tax credits against liabilities shall be limited to the amount that would otherwise be collected and allocated to the Treasurer of State.
(c)
The total amount of tax credits issued and transferable to the authority is sixty million dollars ($60,000,000).
(d)
The tax credits issued under this subchapter shall be transferred only after:
(1)
The authority guaranty funds, subject to limits established by the authority, are exhausted;
(2)
(A)
The authority presents its recommendations concerning the issuance of tax credits to the State Board of Finance.
(B)
These recommendations shall include:
(i)
The amount of tax credits to be transferred to the parties with whom the authority has contracted;
(ii)
The parties to whom the tax credits will be transferred; and
(iii)
Other information requested by the board; and
(3)
The board reviews and approves the issuance of the tax credits.
(e)
(1)
The authority shall immediately notify in writing the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Governor if any tax credit is transferred in conjunction with a legitimate call on an authority guarantee.
(2)
The authority shall not be required to make such a notification for transfers to subsequent transferees.
(f)
The authority shall determine the amount of income tax credits to be transferred by the authority under this subchapter, up to a total amount of ten million dollars ($10,000,000) in any one (1) fiscal year, and may negotiate for sale of the tax credits subject only to the limits imposed under this subchapter.
(g)
The authority shall clearly indicate upon the face of the document transferring the tax credit the principal amount of the tax credit.
(h)
The authority may pay a fee in connection with the purchase by the authority of an option or other agreement under which the transfer of the tax credits authorized under this subchapter may be made.
(i)
The authority shall have the power to make any contract, execute any document, charge reasonable fees for any services rendered, perform any act, or enter into any financial or other transaction necessary in order to carry out its mission.
(j)
(1)
The authority may employ any person as required for:
(A)
Proper implementation of this subchapter;
(B)
The management of its assets; or
(C)
The performance of any function authorized or required by this subchapter or necessary for the accomplishment of any function.
(2)
The person employed shall be selected by the authority based upon outstanding knowledge and leadership in the field for which the person performs services for the authority.
Acts 2001, No. 1791, § 6.