reglab/statecodes huggingface dataset:
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-445 - Adoption expenses

(a)
Title
26 U.S.C. § 23
, as in effect on January 2, 2013, and
26 U.S.C. § 36C
, as in effect on January 2, 2013, are adopted for purposes of determining the allowable credit for adoption-related fees, costs, and expenses paid or incurred by a taxpayer.
(b)
(1)
The amount of credit allowed against Arkansas income tax due is twenty percent (20%) of the federal credit as calculated under
26 U.S.C. §§ 23
and
36C
.
(2)
The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of income tax otherwise due.
Amended by Act 2013, No. 1254,§ 12, eff. 8/16/2013, op. retroactively to tax years beginning on or after 1/1/2012.
Acts 1995, No. 535, §§ 1-4; 1997, No. 951, § 32; 1999, No. 1126, § 38; 2003, No. 663, § 11; 2011, No. 787, § 30.
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-446 - Long-term intergenerational security

(a)
(1)
All distributions of funds other than principal from the long-term intergenerational trust shall be taxable as provided in the Income Tax Act of 1929, §
26-51-101
et seq.
(2)
All distributions from the long-term intergenerational trust shall be deemed principal until all contributions of principal have been withdrawn.
(b)
(1)
In addition to any income tax imposed for distributions from the long-term intergenerational trust as provided in subsection (a) of this section, there is hereby imposed a twenty percent (20%) penalty on all distributions from the long-term intergenerational trust in violation of this section or the Long-Term Intergenerational Security Act of 1995, §
28-72-501
et seq.
(2)
The penalty shall be collected by the Department of Finance and Administration and shall be deposited into the State Treasury as general revenue.
(c)
A beneficiary must file a copy of the long-term intergenerational security trust agreement with his or her income tax return for each taxable year the beneficiary claims the tax benefits provided in this section and the Long-Term Intergenerational Security Act of 1995, §
28-72-501
et seq.
(d)
Upon the death of the beneficiary, all funds remaining in the long-term intergenerational security trust shall be distributed to the beneficiary's estate, and all undistributed income shall be included in the beneficiary's final tax return.
Acts 1995, No. 1303, §§ 4, 5, 7, 8.
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-447 - Deductions - Tuition to postsecondary educational institutions - Definition

(a)
In computing net income for the purposes of the Income Tax Act of 1929, §
26-51-101
et seq., there shall be allowed as a deduction in addition to all other deductions allowed by law for a portion of the amount paid by the taxpayer as tuition for the taxpayer, the taxpayer's spouse or dependent to attend a postsecondary educational institution. The deduction shall be equal to fifty percent (50%) of the lesser of either the amount of tuition paid or the weighted average tuition for postsecondary educational institutions of the same classification.
(b)
On or before November 30, 1998, of each year thereafter, the Secretary of the Department of Finance and Administration shall determine the weighted average tuition of postsecondary institutions of each of the following classifications:
(1)
Four-year institutions of higher education;
(2)
Two-year institutions of higher education; and
(3)
Technical institutes.
(c)
(1)
As used in this section, "weighted average tuition" means the tuition cost resulting from the following calculation:
(A)
Add the products of the annual tuition at each state-supported postsecondary institution of the same classification multiplied by that institution's total number of fiscal-year-equated students; and
(B)
Divide the gross total of the product from subdivision (c)(1)(A) of this section by the total number of fiscal-year-equated students attending each state-supported postsecondary institution of the same classification.
(2)
For four-year institutions of higher education only undergraduate tuition and undergraduate students shall be used in calculating weighted average tuition.
Amended by Act 2019, No. 910,§ 3719, eff. 7/1/2019.
Acts 1997, No. 1075, § 1.
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-448 - Educational individual retirement accounts

(a)
Title
26 U.S.C. § 530
, as in effect on January 2, 2013, relating to educational individual retirement accounts, is adopted for the purpose of computing Arkansas income tax liability.
(b)
Any additional tax or penalty imposed by this section shall be ten percent (10%) of the amount of any additional tax or penalty provided in the federal income tax law adopted by this section.
Amended by Act 2013, No. 1254,§ 13, eff. 8/16/2013, op. retroactively to tax years beginning on or after 1/1/2012.
Acts 1999, No. 513, § 2; 2003, No. 218, § 2; 2005, No. 675, § 13; 2009, No. 372, § 23; 2011, No. 787, § 31.
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-450 - Deductions - Small business guaranty fees - Definition

(a)
In computing net income, there shall be allowed as a deduction the amount paid during a taxable year to the United States Small Business Administration as a guaranty fee associated with the acquisition of United States Small Business Administration financing.
(b)
The deduction shall be taken only by the small business which is the primary obligor in the financing transaction and which paid the fee.
(c)
"Small business" means any corporation, partnership, sole proprietorship, limited liability corporation, or other business entity qualifying as "small" under the standards contained in 13 C.F.R. Part 121, as in effect on January 1, 2001.
(d)
The Revenue Division of the Department of Finance and Administration may promulgate rules as necessary to administer this section.
Amended by Act 2019, No. 315,§ 2965, eff. 7/24/2019.
Acts 2001, No. 1558, § 1.
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-453 - Health savings accounts

(a)
Title
26 U.S.C. § 223(a)-(d), (e)(2), (f), and (g)
, as in effect on January 1, 2011, regarding a deduction from income for amounts deposited to health savings accounts, is adopted for purposes of computing Arkansas income tax liability.
(b)
A health savings account is exempt from tax under this chapter unless it no longer meets the requirements of subsection (a) of this section.
Acts 2005, No. 94, § 1; 2007, No. 218, § 33; 2011, No. 787, § 32.
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-457 - Claim of right

(a)
Title
26 U.S.C. § 1341(a)(1)-(3) and (b)(2)
, as they existed on January 1, 2013, regarding the computation of income tax when a taxpayer restores a substantial amount held under a claim of right, is adopted for purposes of computing income tax liability under this chapter.
(b)
(1)
Title
26 U.S.C. § 1341(a)(4) and (5), (b)(1), and (b)(3)-(5)
, concerning the methods of calculating the deduction authorized under
26 U.S.C. § 1341
and special rules for net operating losses and capital losses, are not adopted.
(2)
For the purpose of computing income tax when a taxpayer restores a substantial amount held under a claim of right under this section:
(A)
The tax imposed under this chapter is calculated for the taxable year by allowing a deduction in the tax year the taxpayer restores the amount held under a claim of right; and
(B)
Net operating losses and capital losses are calculated and deducted under §§
26-51-427
and
26-51-815
.
(c)
The Secretary of the Department of Finance and Administration may promulgate rules to administer this section.
Amended by Act 2019, No. 910,§ 3720, eff. 7/1/2019.
Added by Act 2013, No. 1284,§ 1, eff. for tax years beginning on or after January 1, 2013.
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-458 - Deduction - Volunteer firefighter - Definition

(a)
In computing net income for the purposes of the Income Tax Act of 1929, §
26-51-101
et seq., there is allowed as a deduction in addition to all other deductions allowed by law for the:
(1)
Amount paid by a volunteer firefighter and not reimbursed by the fire department or firefighting unit that the volunteer firefighter serves to purchase firefighting equipment required by the fire department or firefighting unit; and
(2)
Loss of value of personal property of a volunteer firefighter that is damaged or destroyed in the course of his or her participation in fire suppression, rescue, pump operation, or other firefighting activity as a volunteer firefighter.
(b)
The deduction allowed under subsection (a) of this section shall not exceed one thousand dollars ($1,000).
(c)
As used in this section, "volunteer firefighter" means a member of a fire department or firefighting unit who:
(1)
Actively engages in fire suppression, rescue, pump operation, or other firefighting activity; and
(2)
Receives less than five thousand dollars ($5,000) in total compensation during the taxable year from the volunteer fire department or firefighting unit that the volunteer firefighter serves.
(d)
The Secretary of the Department of Finance and Administration may promulgate rules to implement this section.
Amended by Act 2019, No. 910,§ 3721, eff. 7/1/2019.
Added by Act 2013, No. 1452,§ 2, eff. for tax years beginning on and after January 1, 2014.
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-459 - Teacher's classroom investment deduction - Definitions

(a)
As used in this section:
(1)
"Qualified classroom investment expense" means the amount expended by a teacher during the tax year for materials used in the classroom, including without limitation the following:
(A)
Books;
(B)
School supplies;
(C)
Computer equipment and software;
(D)
Athletic equipment;
(E)
Food for the teacher's students; and
(F)
Clothing for the teacher's students; and
(2)
"Teacher" means a teacher, instructor, counselor, principal, or aide for students in any grade from prekindergarten through grade twelve (preK-12) who is employed for at least nine hundred (900) hours in a tax year at a school certified by the state to provide public preschool, elementary, or secondary education.
(b)
In computing net income for the purposes of this chapter, there is allowed as a deduction in addition to all other deductions allowed by law for the qualified classroom investment expenses incurred by a taxpayer.
(c)
The deduction allowed under subsection (b) of this section shall not exceed five hundred dollars ($500) per taxpayer or one thousand dollars ($1,000) for taxpayers who are married filing jointly if each taxpayer is a teacher.
(d)
The Secretary of the Department of Finance and Administration shall promulgate rules to implement this section, including without limitation a form for a taxpayer to use in claiming the deduction provided for under this section.
(e)
A taxpayer claiming a deduction under this section shall:
(1)
Maintain receipts for his or her qualified classroom investment expenses; and
(2)
Itemize the qualified classroom investment expenses on the form provided by the Department of Finance and Administration.
Amended by Act 2021, No. 971,§ 1, eff. for tax years beginning on or after January 1, 2021.
Amended by Act 2019, No. 910,§ 3722, eff. 7/1/2019.
Added by Act 2017, No. 666,§ 1, eff. for tax years beginning on and after 1/1/2017.
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-460 - Opportunity zones - Definition

(a)
Except as provided in subsection (b) of this section,
26 U.S.C. § 1400Z-2
, as in effect on January 1, 2018, regarding opportunity zones, is adopted for the purpose of computing Arkansas income tax liability.
(b)
As used in this section and for purposes of the adoption of
26 U.S.C. § 1400Z-2
, "opportunity zone" means a population census tract located in Arkansas that is designated as a qualified opportunity zone under
26 U.S.C. § 1400Z-1
, as of January 1, 2019.
Added by Act 2019, No. 201,§ 1, eff. for taxable years beginning on or after 1/1/2018.
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 4 - COMPUTATION OF TAX LIABILITY (§§ 26-51-401 — 26-51-461) › Section 26-51-461 - Deduction - Research and development

Title
26 U.S.C. §§ 174
and
280C
, as in effect on January 1, 2019, concerning the deduction of research and development costs, are adopted for the purpose of computing Arkansas income tax liability.
Added by Act 2019, No. 870,§ 14, eff. for tax years beginning on or after 1/1/2019.
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 26-51-502 - Household and dependent care services - Definitions

(a)
A credit shall be allowed to individuals against the income tax imposed by the Income Tax Act of 1929, §
26-51-101
et seq., for expenses for household and dependent care services necessary for gainful employment in the manner prescribed by subsection (b) of this section.
(b)
(1)
Title
26 U.S.C. § 21
, as in effect on January 2, 2013, is adopted for purposes of determining the allowable credit under the Income Tax Act of 1929, §
26-51-101
et seq., for household and dependent care services necessary for gainful employment.
(2)
The amount of credit shall be twenty percent (20%) of the federal credit allowable.
(c)
(1)
(A)
(i)
A credit, which is equal to twenty percent (20%) of the federal childcare credit as allowed under
26 U.S.C. § 21
, as in effect on January 2, 2013, shall be allowed to qualified individuals against the income tax imposed by the Income Tax Act of 1929, §
26-51-101
et seq.
(ii)
The twenty-percent childcare credit is refundable.
(iii)
The excess of the credit over tax liability will be returned to the taxpayer as an overpayment of tax.
(B)
"Qualified individual" means a taxpayer who has a dependent child with respect to whom the taxpayer is entitled to a credit under §
26-51-501(a)(3)
, and who incurs childcare expenses necessary for gainful employment at an approved childcare facility, as defined in subdivision (c)(1)(C) of this section.
(C)
"Approved childcare facility" means a childcare facility which provided an appropriate early childhood program, as defined in §
6-45-103
, and which is approved in accordance with §
6-45-109
.
(2)
A taxpayer cannot claim both the credit allowed in subsections (a) and (b) of this section and the credit allowed in subsection (c) of this section.
(3)
The credit allowed in this subsection shall be effective for taxable years beginning January 1, 2013.
Amended by Act 2013, No. 1254,§ 16, eff. 8/16/2013, op. retroactively to tax years beginning on or after 1/1/2012.
Amended by Act 2013, No. 1254,§ 15, eff. 8/16/2013, op. retroactively to tax years beginning on or after 1/1/2012.
Amended by Act 2013, No. 1254,§ 14, eff. 8/16/2013, op. retroactively to tax years beginning on or after 1/1/2012.
Acts 1973, No. 490, §§ 1, 2; 1977, No. 734, §§ 1, 2; 1983, No. 379, § 15; A.S.A. 1947, §§ 84-2088, 84-2089; Acts 1993, No. 1268, § 1; 1997, No. 328, § 6; 1997, No. 951, § 1; 2003, No. 663, § 13; 2005, No. 675, § 15; 2007, No. 218, § 34; 2011, No. 787, § 33.
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 26-51-503 - Support of a child with a developmental disability - Definitions

(a)
In addition to the state income tax credit permitted by §
26-51-501(a) and (b)
, any taxpayer in this state who is maintaining, supporting, and caring for an individual with a diagnosis of a developmental disability in the taxpayer's home is permitted, in addition to all other income tax credits, a credit of five hundred dollars ($500) for each income year for that individual.
(b)
Any person wishing to take advantage of this tax credit must have certification by a licensed physician, licensed psychologist, or licensed psychological examiner that the individual has a diagnosis of a developmental disability.
(c)
As used in this section:
(1)
"Diagnosis of a developmental disability" means a disability of a person that:
(A)
Is attributable to:
(i)
An intellectual disability, cerebral palsy, epilepsy, spina bifida, Down syndrome, or autism;
(ii)
Another condition of the person found to be closely related to an intellectual disability because the condition results in an impairment of general intellectual functioning or adaptive behavior similar to that of a person with an intellectual disability or requires treatment and services similar to that required for a person with an intellectual disability; or
(iii)
Dyslexia resulting from a disability or condition described in subdivision (c)(1)(A)(i) or subdivision (c)(1)(A)(ii) of this section;
(B)
Originates before the person reaches twenty-two (22) years of age;
(C)
Has continued or can be expected to continue indefinitely; and
(D)
Constitutes a substantial handicap to the person's ability to function without appropriate support services, including without limitation:
(i)
Planned recreational activities;
(ii)
Medical services such as physical therapy and speech therapy; and
(iii)
Possibilities for sheltered employment or job training; and
(2)
"Individual" means a child of the taxpayer's blood, an adopted child, or a dependent within the meaning of §
26-51-501(a)(3)(B)
.
Amended by Act 2023, No. 191,§ 1, eff. for tax years beginning on or after January 1, 2022.
Acts 1967, No. 495, §§ 1, 2; 1977, No. 833, § 1; 1983, No. 523, § 1; A.S.A. 1947, §§ 84-2021.1, 84-2021.2; Acts 1999, No. 417, § 1; 2009, No. 237, § 1; 2011, No. 68, § 5.
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 26-51-504 - Income from sources outside Arkansas - Definition

(a)
(1)
(A)
For the purpose of ascertaining the income tax due by an individual resident of Arkansas whose gross income includes income derived from property located outside the State of Arkansas, or from business transacted outside the State of Arkansas, the tax shall first be computed as if all of the income of the resident were derived from sources within the State of Arkansas, but a credit shall then be given on the tax as so computed, for the amount of income tax actually owed by the resident for the year to any other state or territory on account of income from property owned or business transacted in the other state or territory. However, credit shall not exceed what the tax would be on the outside income, if added to the Arkansas income, and calculated at Arkansas income tax rates.
(B)
Income from property located or business transacted in another state or territory does not include work performed in this state as provided in §
26-51-202(c)
.
(2)
(A)
For purposes of subdivision (a)(1) of this section, the amount of income tax owed to any other state or territory by a resident shareholder of an S corporation shall be considered to include an amount equal to the shareholder's pro rata share of any net income tax owed by the S corporation to a state which does not recognize S corporations.
(B)
As used in subdivision (a)(2)(A) of this section, "net income tax" means any tax imposed on or measured by a corporation's net income.
(b)
Before a resident of Arkansas may claim the credit allowed under this section, he or she shall file with his or her income tax return any such additional information as the Director of the State Income Tax Division or the Secretary of the Department of Finance and Administration may by rule require showing in detail the amount of gross and net income derived from property owned or business transacted without this state, together with the amount of tax actually owed on the income to another state or territory.
(c)
The credit against Arkansas income tax afforded individual residents of Arkansas under this section shall also be available to fiduciaries and partnerships residing or domiciled in Arkansas which are subject to Arkansas income tax or which have to report income for purposes of Arkansas income tax.
Amended by Act 2021, No. 1019,§ 3, eff. for tax years beginning on or after January 1, 2021.
Amended by Act 2019, No. 315,§ 2966, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 3726, eff. 7/1/2019.
Acts 1943, No. 162, §§ 1, 2; 1953, No. 320, § 1; 1961, No. 411, § 1; 1969, No. 75, § 1; A.S.A. 1947, §§ 84-2017, 84-2018, 84-2018.1; Acts 1989, No. 826, § 6; 1993, No. 721, § 1; 1993, No. 785, § 13.
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 26-51-507 - Employer-provided child care - As qualified under former section 26-52-401 - Definition

(a)
A business which qualifies for the exemption from the gross receipts tax under former §
26-52-401(29)
shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of employees employed exclusively in providing childcare services.
(b)
If two (2) or more businesses participate in a childcare program for their employees as provided by former §
26-52-401(29)
, then each business will be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of only those employees who are on the respective business' payroll and are employed exclusively for providing childcare services.
(c)
(1)
To qualify for the income tax credit, the revenue to the business or businesses from the childcare facility cannot exceed the direct operating costs of the facility. If, on an annual basis, the childcare facility receives revenue which exceeds the direct operating costs of the facility, the business or businesses will not be entitled to the income tax credit.
(2)
As used in this section, "direct operating costs" means:
(A)
The cost of food and beverages provided to the children;
(B)
The cost of labor for personnel whose services are performed exclusively on the premises of the childcare facility for the care of the children and all related employment taxes paid by the employer; and
(C)
All materials and supplies necessary to operate the childcare facility.
(d)
The income tax credit created by subsection (a) of this section shall first be available in the taxable year following the year the business makes payment of wages to childcare workers. To the extent that the credit is not fully utilized in this first year, it may be carried forward for an additional two (2) years. Any credit remaining thereafter shall expire.
(e)
The income tax provisions of this section shall be in full force and effect for all income tax years beginning on and after January 1, 1993.
Acts 1993, No. 820, §§ 3, 4; 1993, No. 987, §§ 3, 4; 1995, No. 850, §§ 6, 7.
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 26-51-508 - Employer-provided child care - As qualified under section 26-52-516 or section 26-53-132 - Definition

(a)
A business which qualifies for the refund of the gross receipts tax or compensating use tax under §
26-52-516
or §
26-53-132
shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of its employees employed exclusively in providing childcare service, or a five-thousand-dollar income tax credit for the first tax year the business provides its employees with a childcare facility.
(b)
If two (2) or more businesses participate in a childcare program for their employees as provided by §
26-52-516
or §
26-53-132
, then each business will be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of only those employees who are on the respective business' payroll and are employed exclusively for providing childcare services. The first year's five-thousand-dollar credit will be prorated among the businesses based upon the percentage of the cost paid by each business for the initial construction and equipping of the childcare facility.
(c)
(1)
(A)
To qualify for the income tax credit, the revenue to the business or businesses from the childcare facility cannot exceed the direct operating costs of the facility.
(B)
If, on an annual basis, the business receives revenues from the operation of the childcare facility which exceed the direct operating costs of the facility, the businesses will not be entitled to the income tax credit.
(2)
As used in this subsection, "direct operating costs" means:
(A)
The cost of food and beverages provided to the children;
(B)
The cost of labor for personnel whose services are performed exclusively on the premises of the childcare facility for the care of the children and all related employment taxes paid by the employer; and
(C)
All materials and supplies necessary to operate the childcare facility.
(d)
The income tax credit created by subsection (a) of this section shall first be available in the taxable year following the year the business makes payment of wages to childcare workers. To the extent that the credit is not fully utilized in this first year, it may be carried forward for an additional two (2) years. Any credit remaining thereafter shall expire.
Acts 1995, No. 850, § 5.
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 26-51-512 - Rice straw tax credit - Definitions

(a)
As used in this section:
(1)
"End user" means a person who purchases and uses rice straw for processing, manufacturing, generating energy, or producing ethanol; and
(2)
"Rice straw" means the dry stems of rice left after the seed heads have been removed.
(b)
(1)
There is allowed a credit against the income tax imposed by the Income Tax Act of 1929, §
26-51-101
et seq., in the amount of fifteen dollars ($15.00) for each ton of rice straw over five hundred (500) tons that is purchased by an Arkansas taxpayer who is the end user.
(2)
The amount of credit that may be used by the taxpayer for a taxable year may not exceed fifty percent (50%) of the amount of income tax due for that tax year.
(3)
Any unused credit may be carried forward for ten (10) consecutive tax years following the tax year the credit was earned.
(c)
A taxpayer who claims a credit under this section shall not claim any other state tax credit or deduction for the purchase of rice straw.
Acts 2005, No. 2247, § 1.
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 26-51-513 - Arkansas historic rehabilitation income tax credit

(a)
In addition to any income tax credit not related to the same eligible property for which a taxpayer qualifies, the taxpayer is allowed an income tax credit for the amount of the Arkansas historic rehabilitation income tax credit allowed by the certification of completion issued by the Division of Arkansas Heritage under the Arkansas Historic Rehabilitation Income Tax Credit Act, §
26-51-2201
et seq.
(b)
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 state income tax due by the taxpayer.
(c)
Any unused income tax credit under this section may be carried forward for a maximum of five (5) consecutive tax years for credit against the state income tax.
(d)
The Secretary of the Department of Finance and Administration shall promulgate rules to implement this section.
Amended by Act 2019, No. 910,§ 3728, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3727, eff. 7/1/2019.
Acts 2009, No. 498, § 2.
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 26-51-514 - [Repealed]

Repealed by Act 2019, No. 670,§ 2, eff. 7/24/2019.
Acts 2009, No. 1500, § 1.
Effective if the Chief Fiscal Officer of the State certifies that additional funding has been provided to state general revenues from other funding sources and is available for use during fiscal year 2010 in an amount sufficient to replace the general revenue reduction for the fiscal year 2010 that would result from the allowance of the income tax credit provided in this section. Acts 2009, No. 1500, § 2.
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 26-51-516 - Paisley's Law - Stillborn child tax credit - Definition

(a)
This section shall be known and may be cited as "Paisley's Law".
(b)
There is allowed an income tax credit against the income tax imposed by this chapter in the amount of five hundred dollars ($500) for a stillborn child:
(1)
Who was in gestation for twenty (20) weeks or more;
(2)
For whom a certificate of birth resulting in stillbirth has been issued under §
20-18-410
; and
(3)
Who would have been a dependent of the taxpayer during the taxable year.
(c)
The income tax credit allowed under this section may be claimed only for the taxable year in which the birth resulting in stillbirth occurs.
(d)
The amount of the income tax credit under this section that may be claimed by the taxpayer in a taxable year shall not exceed the amount of income tax due by the taxpayer.
(e)
As used in this section, "stillbirth" means the same as defined in §
20-18-410
.
Added by Act 2021, No. 935,§ 1, eff. for tax years beginning on or after January 1, 2021.
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 26-51-517 - Waterways investment tax credit

(a)
There is allowed an income tax credit against the income tax imposed by this chapter in the amount stated in subsection (b) of this section for the cost of making capital improvements to a facility or property related to using water transportation in the state, including without limitation the construction, improvement, capital facility rehabilitation, and expansion of a waterway facility and the construction or improvement of rail or road access to a waterway facility, on or after January 1, 2024, and on or before December 31, 2025.
(b)
(1)
Except as otherwise provided in this subsection, the tax credit allowed under subsection (a) of this section shall not exceed three million dollars ($3,000,000) for a taxpayer that makes the capital improvements to a facility or property related to using water transportation in the state.
(2)
The amount of the tax credit that a taxpayer may claim each year is limited to a maximum of ten percent (10%) of the total tax credit for which the taxpayer is eligible.
(3)
The total cumulative amount of tax credits for all taxpayers under this section in a tax year shall:
(A)
Not exceed two million five hundred thousand dollars ($2,500,000); and
(B)
Be issued on a first-come, first served basis.
(4)
A tax credit allowed under this section shall be issued only after the Secretary of the Department of Commerce has determined, based on the information provided by the applicant for a tax credit under this section, that the taxpayer's capital investment in a facility or property related to using water transportation in the state will provide an economic benefit to the state that will likely be equal to or greater than the amount of the tax credit allowed under this section.
(c)
Any unused income tax credit that cannot be claimed in a tax year because of the limit stated in subdivision (b)(2) of this section may be carried forward for nine (9) consecutive tax years following the tax year in which the income tax credit was earned.
(d)
A taxpayer is not eligible for the credit allowed under this section if the taxpayer has received funds under the Arkansas Port, Intermodal, and Waterway Development Grant Program.
(e)
The Secretary of the Department of Finance and Administration shall:
(1)
Promulgate rules to implement this section;
(2)
Review the overall economic impact of this section on or before December 31, 2030, and again on or before December 31, 2035; and
(3)
Report his or her findings under subdivision (e)(2) of this section to the Legislative Council or, if the General Assembly is in session, to the Joint Budget Committee within thirty (30) days of completing the required review.
Added by Act 2023, No. 881,§ 4, eff. 1/1/2024, app. for tax years beginning on or after January 1, 2024.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-701 - Definitions

As used in this Act, unless the context otherwise requires:
(a)
"Business income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations.
(b)
"Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.
(c)
"Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services.
(d)
[Repealed.]
(e)
"Nonbusiness income" means all income other than business income.
(f)
"Public utility" means any business entity which owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, oil, oil products, or gas.
(g)
"Sales" means all gross receipts of the taxpayer not allocated under §§
26-51-704
-
26-51-708
.
(h)
"State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof.
Acts 1961, No. 413, § 1; 1963, No. 529, § 1; 1979, No. 1024, § 1; A.S.A. 1947, § 84-2055; Acts 1989, No. 494, § 3.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-702 - Apportionment of net income authorized

Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a railroad or public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in this Act.
Amended by Act 2023, No. 658,§ 4, eff. for tax years beginning on or after 1/1/2023.
Acts 1961, No. 413, § 2; A.S.A. 1947, § 84-2056; Acts 1989, No. 494, § 1.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-703 - Taxpayer taxable in another state

For purposes of allocation and apportionment of income under this Act, a taxpayer is taxable in another state if (1) in that state the taxpayer is subject to a net income tax, a franchise tax measured by net income, or any other tax measured by income or other measure of business activity in the state and the taxpayer files the requisite tax return in the other state, or (2) the state has no net income tax, franchise tax measured by net income, or any other tax measured by income or other measure of business activity in the state as provided in subdivision (1) of this section and the taxpayer has activities in the other state that exceed those protected by
15 U.S.C. §§ 381
-
384
.
Acts 1961, No. 413, § 3; A.S.A. 1947, § 84-2057; Acts 2001, No. 1228, § 1; 2003, No. 1183, § 1.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-704 - Nonbusiness income

Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in §§
26-51-705
-
26-51-708
.
Acts 1961, No. 413, § 4; A.S.A. 1947, § 84-2058.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-705 - Rents and royalties - Extent of utilization of tangible personal property

(a)
Net rents and royalties from real property located in this state are allocable to this state.
(b)
Net rents and royalties from tangible personal property are allocable to this state:
(1)
if and to the extent that the property is utilized in this state, or
(2)
in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
(c)
The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
Acts 1961, No. 413, § 5; A.S.A. 1947, § 84-2059.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-706 - Capital gains and losses from sales of property

(a)
Capital gains and losses from sales of real property located in this state are allocable to this state.
(b)
Capital gains and losses from sales of tangible personal property are allocable to this state if:
(1)
the property had a situs in this state at the time of the sale, or
(2)
the taxpayer's commercial domicile is in this state, or
(3)
the property has been included in depreciation which has been allocated to this state; in which event gains or losses on such sales shall be allocated on the percentage that is used in the formula for allocating income to Arkansas during the year of such sales.
(c)
Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
Acts 1961, No. 413, § 6; A.S.A. 1947, § 84-2060.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-707 - Interest and dividends

Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.
Acts 1961, No. 413, § 7; A.S.A. 1947, § 84-2061.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-708 - Patent and copyright royalties

(a)
Patent and copyright royalties are allocable to this state:
(1)
if and to the extent that the patent or copyright is utilized by the payer in this state, or
(2)
if and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
(b)
A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
(c)
A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.
Acts 1961, No. 413, § 8; A.S.A. 1947, § 84-2062.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-709 - Business income

For the tax year beginning January 1, 2021, all business income shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period and the denominator of which is the total sales of the taxpayer everywhere during the tax period.
Amended by Act 2019, No. 822,§ 7, eff. 1/1/2021.
Acts 1961, No. 413, § 9; A.S.A. 1947, § 84-2063; Acts 1995, No. 682, § 2.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-710 - [Repealed]

Repealed by Act 2019, No. 822,§ 8, eff. 1/1/2021.
Acts 1961, No. 413, § 10; A.S.A. 1947, § 84-2064.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-711 - [Repealed]

Repealed by Act 2019, No. 822,§ 8, eff. 1/1/2021.
Acts 1961, No. 413, § 11; A.S.A. 1947, § 84-2065.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-712 - [Repealed]

Amended by Act 2019, No. 910,§ 3729, eff. 7/1/2019.
Repealed by Act 2019, No. 822,§ 8, eff. 1/1/2021.
Acts 1961, No. 413, § 12; A.S.A. 1947, § 84-2066.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-713 - [Repealed]

Repealed by Act 2019, No. 822,§ 8, eff. 1/1/2021.
Acts 1961, No. 413, § 13; A.S.A. 1947, § 84-2067.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-714 - [Repealed]

Repealed by Act 2019, No. 822,§ 8, eff. 1/1/2021.
Acts 1961, No. 413, § 14; A.S.A. 1947, § 84-2068.
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 7 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES ACT (§§ 26-51-701 — 26-51-723) › Section 26-51-715 - [Repealed]

Repealed by Act 2019, No. 822,§ 8, eff. 1/1/2021.
Acts 1961, No. 413, § 15; A.S.A. 1947, § 84-2069.