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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1002 - Legislative findings

(a)
The State of Arkansas is blessed with abundant rainfall and other surface and underground water resources which, when managed conjunctively, can provide a continuous high quality water supply to meet the foreseeable needs of the entire state.
(b)
Existing water use patterns are depleting groundwater supplies at an unacceptable rate, and alternative surface water supplies are not available in sufficient quantities to alleviate this groundwater depletion problem.
(c)
The tax incentives provided in this subchapter will encourage the water users to invest in:
(1)
The construction of impoundments to utilize available surface water and reduce our dependence on groundwater;
(2)
The conversion from groundwater use to surface water use when surface water is available; and
(3)
The water conservation practice of land leveling to reduce agricultural irrigation water use.
(d)
It is of utmost importance to Arkansas that, within critical groundwater areas, surface water be used when available.
Acts 1995, No. 341, § 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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1003 - Definitions

As used in this subchapter:
(1)
"Acre-foot" means the volumetric measure equal to forty-three thousand five hundred sixty cubic feet (43,560 cu. ft.) or approximately three hundred twenty-five thousand nine hundred gallons (325,900 gals.);
(2)
"Application" means a written request for approval of a project for tax credits, describing the project, including a water conservation plan outlining the operation of the project and any additional requirements as the Arkansas Natural Resources Commission may adopt by rule;
(3)
"Approved applicant" means an individual, fiduciary, partnership, limited liability company, or corporation that submits a written request for approval of a project for tax credits in compliance with this subchapter and receives a certificate of approval for that project;
(4)
"Commission" means the Arkansas Natural Resources Commission;
(5)
"Critical groundwater areas" means those areas that are designated by the commission pursuant to the Arkansas Groundwater Protection and Management Act, §
15-22-901
et seq.;
(6)
"Department" means the Department of Finance and Administration;
(7)
"Land leveling" means modifying the surface relief of a field to a planned grade to provide a more suitable surface for efficiently applying irrigation water without excessive erosion, loss of water quality, or damage to land by waterlogging;
(8)
"Project" means:
(A)
The construction, installation, or restoration of water impoundment or water control structures of twenty (20) acre-feet or more designed for the purpose of storing water to be used for agricultural, commercial, or industrial purposes;
(B)
The conversion from groundwater to surface water use by agricultural, commercial, industrial, or recreational water users;
(C)
Agricultural land leveling resulting in water savings due to the more efficient use of irrigation water for which tax credits are claimed; and
(D)
(i)
The purchase and installation of water measuring or metering devices used to determine the quantity of water used.
(ii)
Installation of such devices shall be considered a conversion from groundwater to surface water for tax credit purposes; and
(9)
"Project cost" means the actual expenditure for a project, less any reimbursement received by the approved applicant from cost-share programs.
Acts 1995, No. 341, § 3; 1999, No. 1050, § 18; 2001, No. 727, § 1; 2011, No. 631, § 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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1004 - Applicability - Effective date

(a)
The tax credits provided by this subchapter shall apply to taxable years beginning on or after January 1, 1996, and all taxable years thereafter.
(b)
Any approved applicant claiming a tax credit under this subchapter may not claim a credit under any similar act for any costs related to the same project.
(c)
Any tax credit issued to an approved applicant that is a partnership, a limited liability company taxed as a partnership, a Subchapter S corporation, or a fiduciary shall be passed through to the partners, members, or owners, respectively, on a pro rata basis or pursuant to an executed agreement between or among the partners, members, or owners documenting an alternative method for the distribution of the tax credit.
Amended by Act 2013, No. 1135,§ 8, eff. 8/16/2013.
Acts 1995, No. 341, §§ 4, 16; 2011, No. 631, § 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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1005 - Credit granted - Water impoundments

(a)
There shall be allowed a credit against the tax imposed by the Income Tax Act of 1929, §
26-51-101
et seq., to an approved applicant that constructs and installs or restores water impoundments or water control structures of twenty (20) acre-feet or more designed for the purpose of storing water to be used primarily for agricultural, commercial, or industrial purposes.
(b)
(1)
The tax credit allowed to each approved applicant shall not exceed the lesser of fifty percent (50%) of the project cost incurred or one hundred twenty thousand dollars ($120,000).
(2)
(A)
The amount of tax credit allowed to each approved applicant per project that may be used for a taxable year shall not exceed the lesser of:
(i)
The amount of individual or corporate income tax otherwise due; or
(ii)
Eighteen thousand dollars ($18,000).
(B)
If the approved applicant is a pass-through entity such as a partnership, a limited liability company taxed as a partnership, a Subchapter S corporation, or a fiduciary, the amount of tax credit that may be used for a taxable year shall not exceed the lesser of:
(i)
The aggregate amount of individual or corporate income tax otherwise due by all members of the pass-through entity; or
(ii)
Eighteen thousand dollars ($18,000).
(3)
Any unused credit may be carried over for a maximum of fifteen (15) consecutive taxable years following the taxable year in which the credit originated.
Amended by Act 2021, No. 875,§ 1, eff. for tax years beginning on or after January 1, 2021.
Amended by Act 2017, No. 1125,§ 1, eff. for tax years beginning on and after 1/1/2017.
Acts 1995, No. 341, § 6; 2001, No. 727, § 2; 2011, No. 631, § 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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1007 - Credit granted - Surface water conversion outside critical areas

(a)
For projects located outside critical groundwater areas, there shall be allowed a credit against the tax imposed by the Income Tax Act of 1929, §
26-51-101
et seq., to an approved applicant for the reduction of groundwater use by substitution of surface water for water used for industrial, commercial, agricultural, or recreational purposes.
(b)
(1)
The tax credit allowed to each approved applicant shall not exceed the lesser of twenty-five percent (25%) of the project cost incurred or thirty-five thousand dollars ($35,000).
(2)
(A)
The amount of tax credit allowed to each approved applicant per project that may be used for a taxable year may not exceed the lesser of:
(i)
The amount of individual or corporate income tax otherwise due; or
(ii)
Eighteen thousand dollars ($18,000).
(B)
If the approved applicant is a pass-through entity such as a partnership, a limited liability company taxed as a partnership, a Subchapter S corporation, or a fiduciary, the amount of tax credit that may be used for a taxable year shall not exceed the lesser of:
(i)
The aggregate amount of individual or corporate income tax otherwise due by all members of the pass-through entity; or
(ii)
Eighteen thousand dollars ($18,000).
(3)
Any unused tax credit may be carried over for a maximum of fifteen (15) consecutive taxable years following the taxable year in which the credit originated.
Amended by Act 2021, No. 875,§ 2, eff. for tax years beginning on or after January 1, 2021.
Acts 1995, No. 341, § 8; 2011, No. 631, § 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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1009 - Credit granted - Land leveling for water conservation

(a)
There shall be allowed a credit against the tax imposed by the Income Tax Act of 1929, §
26-51-101
et seq., to an approved applicant for agricultural land leveling to conserve irrigation water.
(b)
(1)
The tax credit allowed to each approved applicant shall not exceed the lesser of twenty-five percent (25%) of the project cost incurred or thirty-five thousand dollars ($35,000).
(2)
(A)
The amount of tax credit allowed to each approved applicant per project that may be used for a taxable year may not exceed the lesser of:
(i)
The amount of individual or corporate income tax otherwise due; or
(ii)
Eighteen thousand dollars ($18,000).
(B)
If the approved applicant is a pass-through entity such as a partnership, a limited liability company taxed as a partnership, a Subchapter S corporation, or a fiduciary, the amount of tax credit that may be used for a taxable year shall not exceed the lesser of:
(i)
The aggregate amount of individual or corporate income tax otherwise due by all members of the pass-through entity; or
(ii)
Eighteen thousand dollars ($18,000).
(3)
Any unused tax credit may be carried over for a maximum of fifteen (15) consecutive taxable years following the taxable year in which the credit originated.
Amended by Act 2021, No. 875,§ 4, eff. for tax years beginning on or after January 1, 2021.
Acts 1995, No. 341, § 10; 2011, No. 631, § 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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1010 - Application and approval procedure - Administration

(a)
(1)
The Arkansas Natural Resources Commission shall promulgate such rules as may be deemed necessary in administering projects submitted with the intent of qualifying for the tax incentives provided for in this subchapter.
(2)
The rules shall not be adopted without the approval of the Department of Finance and Administration.
(b)
(1)
The commission may charge a reasonable application fee for the processing of tax credit applications.
(2)
All fees collected shall be deposited into the Arkansas Water Development Fund.
(c)
(1)
The commission may issue a tax credit approval certificate for those applications proposing projects that meet the requirements of this subchapter and rules promulgated under this subchapter.
(2)
An approved applicant must file the certificate of tax credit approval with the approved applicant's income tax return for the first year in which the approved applicant claims a tax credit under this subchapter.
(d)
(1)
Upon completion of the project, the approved applicant shall apply to the commission for a certificate of completion.
(2)
The commission shall issue a tax credit certificate of completion to any approved applicant meeting the requirements of this subchapter and the rules promulgated by the department.
(3)
After receiving a certificate of completion, the approved applicant shall file the certificate of completion with the first tax return filed after issuance of the certificate of completion.
(e)
The department shall promulgate such rules as may be deemed necessary to carry out the tax credit provisions of this subchapter.
Amended by Act 2019, No. 315,§ 2978, eff. 7/24/2019.
Amended by Act 2013, No. 1135,§ 10, eff. 8/16/2013.
Amended by Act 2013, No. 1135,§ 9, eff. 8/16/2013.
Acts 1995, No. 341, §§ 5, 11; 2011, No. 631, § 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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1011 - Development, operation, and tax credits

(a)
Project activities shall meet or exceed those standards as established by the Arkansas Natural Resources Commission, and the project must be maintained for a minimum life of ten (10) years after issuance of a certificate of completion.
(b)
Project costs incurred after issuance of a tax credit approval certificate may be claimed for tax credit, subject to other limitations contained in this subchapter.
(c)
(1)
All projects must be completed within five (5) years of the date of the certificate of tax credit approval.
(2)
If the approved applicant does not complete the project within the period provided in subdivision (c)(1) of this section, all tax credits claimed shall be repaid to the Department of Finance and Administration, and the project will be disallowed as a project for tax credit purposes.
(d)
(1)
If the approved applicant terminates the project prior to expiration of the minimum project life, the approved applicant shall provide written notification to the commission and the department. In addition, the approved applicant shall file an amended tax return and repay the amount of tax credit claimed that was not allowable.
(2)
If the commission determines that the approved applicant has terminated the project, it shall notify the department.
(e)
(1)
Upon the termination of a project, the approved applicant shall not be allowed any further tax credits provided in this subchapter, and the department shall recapture the pro rata share of any tax credits claimed under this subchapter for the period of termination.
(2)
The pro rata share for recapture of the disallowed tax credits shall be determined by dividing the period of time from termination of the project until the expiration of the minimum life of the project by the required minimum life of the project times the tax credit claimed.
(f)
Notwithstanding the provisions of §
26-18-306
, the department may make necessary assessments to recapture disallowed tax credits for a period of three (3) years from the date of expiration of the minimum life of the project.
(g)
For purposes of this subchapter, the recordkeeping provisions of §
26-18-506
requiring an approved applicant to maintain records for six (6) years after a return is filed shall be extended to require the approved applicant claiming a credit under this subchapter to maintain the required records for the required minimum life of the project plus three (3) years.
Amended by Act 2021, No. 563,§ 1, eff. retroactively to all projects for which a certificate of tax credit approval was issued on or after January 1, 2017.
Acts 1995, No. 341, § 12; 2011, No. 631, § 9.
The amendment to subdivison (c)(1) by Act 2021, No. 563 is effective retroactively to all projects for which a certificate of tax credit approval was issued on or after January 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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1012 - Deduction for project costs above tax credit

(a)
In determining net income for Arkansas income tax purposes, any approved applicant qualifying for the tax credits provided in this subchapter is also entitled to a deduction in an amount equal to the project cost less the total amount of tax credits to which the approved applicant is entitled under this subchapter.
(b)
The deduction provided for in this subchapter shall be taken only during the year in which the expenditures for the project were actually incurred.
Amended by Act 2013, No. 1135,§ 11, eff. 8/16/2013.
Acts 1995, No. 341, § 13; 2011, No. 631, § 10.
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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1013 - Annual compilation of credits - Expiration of the subchapter

(a)
The Department of Finance and Administration shall compile the total amount of tax credits used pursuant to the provisions of this subchapter for each calendar year.
(b)
(1)
When the total amount of tax credits used pursuant to the provisions of this subchapter exceeds twenty million dollars ($20,000,000) in any calendar year, the tax credits established by this subchapter shall expire on December 31 of the calendar year following the calendar year in which the tax credits used pursuant to the provisions of this subchapter exceeded twenty million dollars ($20,000,000).
(2)
However, any approved applicant issued a certificate of tax credit approval on or prior to December 31 may complete the project and shall be entitled to the tax credits provided under this subchapter without regard to the fact that the availability of the tax credits has otherwise expired.
Amended by Act 2021, No. 875,§ 5, eff. for tax years beginning on or after January 1, 2021.
Acts 1995, No. 341, § 14; 1999, No. 765, § 2; 2011, No. 631, § 11.
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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1014 - Construction

No part or segment of this subchapter shall be interpreted to in any way alter or amend the permit requirements, reporting requirements, allocation procedures, or other requirements set forth in Title 15, Chapter 22.
Acts 1995, No. 341, § 15.
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 10 - WATER RESOURCE CONSERVATION AND DEVELOPMENT INCENTIVES ACT (§§ 26-51-1001 — 26-51-1015) › Section 26-51-1015 - Transfer of credit

(a)
The income tax credits allowed under this subchapter may be transferred.
(b)
A transferee from an original approved applicant under this subchapter is entitled to an income tax credit under this subchapter only to the extent the income tax credit is still available to and has not previously been used by the transferor.
(c)
A transferee of income tax credits under this subchapter that seeks to qualify for the income tax credits provided in this subchapter shall obtain and attach to the transferee's income tax return for the years the income tax credit is claimed a certified statement from the transferor stating the:
(1)
Name and address of the original purchaser and all transferees;
(2)
Tax identification number of all persons entitled to any portion of the original income tax credit;
(3)
Original date the income tax credit was approved;
(4)
Amount of the income tax credit associated with the transfer of the income tax credit;
(5)
Original amount of the income tax credit; and
(6)
Remaining amount of the income tax credit that is available for use by the transferee.
(d)
A transferee under this section is subject to the carry-over provisions provided in this subchapter based on the taxable year in which the income tax credit originated.
(e)
(1)
If a project is not completed or maintained for the total number of years required under §
26-51-1011
, the transferor that originally received the income tax credit under this subchapter is responsible for refunding the income tax credit to the Department of Finance and Administration as provided in §
26-51-1011
.
(2)
The transferee of an income tax credit under this subchapter is not liable for the repayment of the income tax credit allowed under this subchapter if the transferor that originally received the income tax credit fails to complete or maintain the project under §
26-51-1011
.
(f)
An owner or holder that assigns part or all of an income tax credit under this section shall perfect the transfer by notifying the department in writing within thirty (30) calendar days following the effective date of the transfer and shall provide any information as may be required by the department to administer and carry out this subchapter and to ensure proper tracking of the ownership of the unused income tax credit.
Added by Act 2019, No. 1073,§ 1, eff. for tax years beginning on or after 1/1/2020.
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 11 - DONATIONS OR SALES OF EQUIPMENT TO EDUCATIONAL INSTITUTIONS (§§ 26-51-1101 — 26-51-1106) › Section 26-51-1102 - Credit granted

(a)
(1)
There is granted a credit against a taxpayer's Arkansas corporate income tax or Arkansas individual income tax for the following types of donations or sales, or both, of new machinery and equipment to a qualified educational institution in connection with a qualified education program or a qualified research program:
(A)
Donations of new machinery and equipment;
(B)
Sales below cost of machinery and equipment; and
(C)
Cash donations for the purchase of new machinery and equipment by a qualified educational institution.
(2)
The amount of the credit granted by this section shall be:
(A)
In the case of a donation, thirty-three percent (33%) of the cost of the machinery and equipment donated;
(B)
In the case of a sale below cost, thirty-three percent (33%) of the amount by which the cost is reduced; and
(C)
In the case of a cash donation, thirty-three percent (33%) of the amount of the cash donation used by the qualified educational institution to purchase new machinery and equipment from a wholesale, retail, or manufacturing business.
(b)
There is granted a credit against a taxpayer's Arkansas corporate income tax or Arkansas individual income tax equal to thirty-three percent (33%) of the qualified research expenditures of a taxpayer in qualified research programs.
(c)
(1)
There is granted a credit against a taxpayer's Arkansas corporate income tax or Arkansas individual income tax equal to thirty-three percent (33%) of a donation made to an accredited institution of higher education to support a research park authority.
(2)
In order to claim this credit authorized by subdivision (c)(1) of this section, a donation made in support of a research park authority shall:
(A)
Be consistent with the research and development plan approved by the Director of the Arkansas Economic Development Commission with the advice of the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission, as evidenced by a letter of support from the director; and
(B)
Support either directly or indirectly research subject to being funded by one (1) or more federal agencies, as enumerated in §
15-3-205(1)
.
Amended by Act 2019, No. 203,§ 4, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 633, eff. 7/1/2019.
Amended by Act 2015EX1, No. 8,§ 119, eff. 7/1/2015.
Amended by Act 2015EX1, No. 7,§ 119, eff. 7/1/2015.
Acts 1985, No. 469, §§ 2, 3; 1985, No. 759, §§ 2, 3; A.S.A. 1947, §§ 84-2021.32, 84-2021.33; Acts 2007, No. 1045, § 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 11 - DONATIONS OR SALES OF EQUIPMENT TO EDUCATIONAL INSTITUTIONS (§§ 26-51-1101 — 26-51-1106) › Section 26-51-1103 - Limit on total credit

(a)
Total credits for qualified research expenditures, donations, and sales under this subchapter shall be allowed up to one hundred percent (100%) of the net tax liability of the taxpayer after all other credits and reductions in tax have been calculated.
(b)
The credit shall be claimed in the tax year of the qualified research expenditure, donation, or sale. However, all or part of any unused credit may be carried over to and claimed in succeeding tax years until the credits are exhausted or until the end of the nine (9) tax years succeeding the tax year of the qualified research expenditure, donation, or sale, whichever occurs earlier. In no event shall a taxpayer claim a credit under this subchapter for any tax year in excess of one hundred percent (100%) of the net tax due after all other credits and reductions in tax have been calculated.
(c)
Any person claiming any credit granted by this subchapter for any expense or contribution shall not take any deduction under the Arkansas income tax law for the same expense or contribution.
Acts 1985, No. 469, § 4; 1985, No. 759, § 4; A.S.A. 1947, § 84-2021.34; Acts 2007, No. 1607, § 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 11 - DONATIONS OR SALES OF EQUIPMENT TO EDUCATIONAL INSTITUTIONS (§§ 26-51-1101 — 26-51-1106) › Section 26-51-1104 - Documentation required

(a)
To claim the credit granted by §
26-51-1102
, the taxpayer shall provide the following for each piece of machinery and equipment donated, sold below cost, or purchased by a qualified educational institution with a cash donation:
(1)
An affidavit from the receiving qualified educational institution that:
(A)
The qualified educational institution has received the machinery and equipment;
(B)
The machinery and equipment is new machinery and equipment within the meaning of this subchapter;
(C)
The qualified educational institution received the machinery and equipment as a donation or, if the qualified educational institution purchased the machinery and equipment, a statement of the amount paid for the machinery and equipment; and
(D)
The machinery and equipment has been donated, purchased by the qualified educational institution with a cash donation provided by a taxpayer, or sold to the qualified educational institution for use in a qualified education program or a qualified research program; and
(2)
(A)
In the case of a donation or sale by a retail or wholesale business, a copy of the invoice from the business' supplier showing the actual cost of the machinery and equipment.
(B)
In the case of a donation or sale below cost by a manufacturer, a copy of the manufacturer's wholesale price list showing the lowest price of the machinery and equipment for which credit is claimed.
(C)
In the case of a purchase by a qualified educational institution with a cash donation, itemized receipts documenting the amount of the cash donation and the purchase costs of the new machinery and equipment.
(b)
To claim the credit granted by §
26-51-1102
, the taxpayer shall show that the Director of the Arkansas Economic Development Commission and the Commissioner of the Division of Higher Education have approved the qualified research expenditure as a part of a qualified research program.
(c)
Copies of each of the above documents shall be filed by the taxpayer with the Arkansas Economic Development Commission and with his or her return as an attachment to the form prescribed by the Secretary of the Department of Finance and Administration.
Amended by Act 2023, No. 786,§ 57, eff. 4/12/2023.
Amended by Act 2019, No. 203,§ 5, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 3775, eff. 7/1/2019.
Amended by Act 2015EX1, No. 8,§ 120, eff. 7/1/2015.
Amended by Act 2015EX1, No. 7,§ 120, eff. 7/1/2015.
Acts 1985, No. 469, § 5; 1985, No. 759, § 5; A.S.A. 1947, § 84-2021.35.
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 11 - DONATIONS OR SALES OF EQUIPMENT TO EDUCATIONAL INSTITUTIONS (§§ 26-51-1101 — 26-51-1106) › Section 26-51-1105 - Rules

The Secretary of the Department of Finance and Administration, the Commissioner of the Division of Higher Education, the Director of the Division of Career and Technical Education, the Secretary of the Department of Education, and the Director of the Arkansas Economic Development Commission shall jointly promulgate rules to carry out the purposes of this subchapter.
Amended by Act 2023, No. 786,§ 58, eff. 4/12/2023.
Amended by Act 2019, No. 203,§ 5, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 3776, eff. 7/1/2019.
Amended by Act 2015EX1, No. 8,§ 121, eff. 7/1/2015.
Amended by Act 2015EX1, No. 7,§ 121, eff. 7/1/2015.
Acts 1985, No. 469, § 6; 1985, No. 759, § 6; A.S.A. 1947, § 84-2021.36.
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 11 - DONATIONS OR SALES OF EQUIPMENT TO EDUCATIONAL INSTITUTIONS (§§ 26-51-1101 — 26-51-1106) › Section 26-51-1106 - Application for credit approval

(a)
To apply for a credit under this subchapter, a taxpayer shall submit an original application and one (1) copy to the Director of the Arkansas Economic Development Commission on the forms prescribed by the director.
(b)
The director shall review each application submitted under this subchapter and shall either:
(1)
Approve the application; or
(2)
Reject the application and notify the applicant of the deficiencies in the application.
(c)
An applicant that receives approval from the director under this section shall sign a financial incentive agreement outlining the terms and conditions of the credit granted under this subchapter.
(d)
An applicant may resubmit a rejected application after addressing any deficiencies identified by the director.
(e)
For an application submitted on or after July 24, 2019, an expenditure incurred before the approval date of the financial incentive agreement required under subsection (b) of this section shall be denied a credit under this subchapter.
Added by Act 2019, No. 203,§ 6, eff. 7/24/2019.
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 12 - STEEL MILL TAX INCENTIVES (§§ 26-51-1201 — 26-51-1215) › Section 26-51-1201 - Definition

As used in this section, §
26-51-1202
, and §
26-51-1203
, "invested" includes expenditures made from the proceeds of bonds, including interim notes or other evidence of indebtedness, issued by a municipality, county, or an agency or instrumentality of a municipality, county, or the State of Arkansas, if the obligation to repay the bonds, including interest on the bonds, is a legal, binding obligation, directly or indirectly, of the taxpayer.
Acts 1987, No. 48, § 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 12 - STEEL MILL TAX INCENTIVES (§§ 26-51-1201 — 26-51-1215) › Section 26-51-1202 - Certification required

(a)
To claim the benefits of this section, §
26-51-1201
, and §
26-51-1203
, a taxpayer must obtain a certification from the Director of the Arkansas Economic Development Commission certifying to the Revenue Division of the Department of Finance and Administration that the taxpayer:
(1)
Operates a steel mill in Arkansas which began production after February 16, 1987; and
(2)
Has invested, after February 16, 1987, in excess of one hundred twenty million dollars ($120,000,000) in the steel mill, which investment expenditure is for one (1) of the following:
(A)
Property purchased for use in the construction of a building or buildings or any addition or improvement thereon to house the steel mill;
(B)
Machinery and equipment to be located in or in connection with the steel mill. Motor vehicles of a type subject to registration shall not be considered as machinery and equipment; or
(C)
Project planning costs or construction labor costs, including on-site direct labor and supervision, whether employed by a contractor or the project owner; architectural fees, engineering fees, or both; right-of-way purchases; utility extensions; site preparation; parking lots; disposal or containment systems; water and sewer treatment systems; rail spurs; streets and roads; purchase of mineral rights; land; buildings; building renovation; production, processing, and testing equipment; freight charges; building demolition; material handling equipment; drainage systems; water tanks and reservoirs; storage facilities; equipment rental; contractor's cost plus fees; builders risk insurance; original spare parts; job administrative expenses; office furnishings and equipment; rolling stock; capitalized start-up costs as recognized by generally accepted accounting principles; and other costs related to the construction.
(b)
As used in subdivision (a)(2)(C) of this section, "production and processing equipment" includes machinery and equipment essential for the receiving, storing, processing, and testing of raw materials and the production, storage, testing, and shipping of finished products, including facilities for the production of steam, electricity, chemicals, and other materials that are essential to the manufacturing process, but which are consumed in the manufacturing process and do not become essential components of the finished product.
Acts 1987, No. 48, § 1; 1997, No. 540, § 89.
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 12 - STEEL MILL TAX INCENTIVES (§§ 26-51-1201 — 26-51-1215) › Section 26-51-1203 - Net operating loss deduction - Carry forward

(a)
Taxpayers qualified under §
26-51-1202(a) and (b)
, entitled to a net operating loss deduction as provided in §
26-51-427
, may carry forward that deduction to the next succeeding taxable year following the year of the net operating loss and annually thereafter for a total period of ten (10) years or until the net operating loss has been exhausted, whichever is earlier.
(b)
The net operating loss deduction must be carried forward in the order named above.
Acts 1987, No. 48, § 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 12 - STEEL MILL TAX INCENTIVES (§§ 26-51-1201 — 26-51-1215) › Section 26-51-1211 - Definitions

As used in this section and §§
26-51-1212
-
26-51-1214
:
(1)
"Invested" includes expenditures made from the proceeds of bonds including interim notes or other evidence of indebtedness issued by a municipality, county, or an agency or instrumentality of a municipality, county, or the State of Arkansas, if the obligation to repay the bonds, including interest thereon, is a legal, binding obligation, directly or indirectly, of the taxpayer;
(2)
"Production and processing equipment" includes machinery and equipment essential for the receiving, storing, processing, and testing of raw materials and the production, storage, testing, and shipping of finished products, including facilities for the production of steam, electricity, chemicals, and such other materials that are essential to the manufacturing process, but which are consumed in the manufacturing process and do not become essential components of the finished product; and
(3)
A taxpayer is a "qualified manufacturer of steel" if:
(A)
The taxpayer is a natural person, company, or corporation engaged in the manufacture, refinement, or processing of steel; and
(B)
More than fifty percent (50%) of the electricity or natural gas consumed in the manufacture, refinement, or processing of steel by the taxpayer is used either:
(i)
To power an electric arc furnace or furnaces, continuous casting equipment, or rolling mill equipment in connection with melting, continuous casting, or rolling of steel; or
(ii)
In the preheating of steel for processing through a rolling mill.
Acts 1991, No. 136, § 1; 1991, No. 137, § 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 12 - STEEL MILL TAX INCENTIVES (§§ 26-51-1201 — 26-51-1215) › Section 26-51-1212 - Certification required - Contents

To claim the benefits of this section, §
26-51-1211
, §
26-51-1213
, and §
26-51-1214
, a taxpayer must obtain certification prior to June 30, 1994, from the Director of the Arkansas Economic Development Commission certifying to the Revenue Division of the Department of Finance and Administration that:
(1)
The taxpayer is a qualified manufacturer of steel, as defined in §
26-51-1211
; or
(2)
(A)
The taxpayer operates a steel mill in Arkansas which began production after February 13, 1991; and
(B)
The taxpayer has invested, after February 13, 1991, in excess of one hundred twenty million dollars ($120,000,000) in the steel mill, which investment expenditure is for one (1) of the following:
(i)
Property purchased for use in the construction of a building or buildings or any addition or improvement thereon to house the steel mill;
(ii)
Machinery and equipment to be located in or in connection with the steel mill. Motor vehicles of a type subject to registration shall not be considered as machinery and equipment; or
(iii)
Project planning costs; construction labor costs, including on-site direct labor and supervision, whether employed by a contractor or the project owner; architectural or engineering fees; right-of-way purchases; utility extensions; site preparation; parking lots; disposal or containment systems; water and sewer treatment systems; rail spurs; streets and roads; purchase of mineral rights; land; buildings; building renovation; production, processing, and testing equipment; freight charges; building demolition; material handling equipment; drainage systems; water tanks and reservoirs; storage facilities; equipment rental; contractor's cost plus fees; builders risk insurance; original spare parts; job administration expenses; office furnishings and equipment; rolling stock; capitalized start-up costs as recognized by generally accepted accounting principles; and other costs related to the construction.
Acts 1991, No. 136, § 2; 1991, No. 137, § 2; 1997, No. 540, § 90.
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 12 - STEEL MILL TAX INCENTIVES (§§ 26-51-1201 — 26-51-1215) › Section 26-51-1213 - Net operating loss deduction - Carry forward

(a)
Taxpayers qualified under §
26-51-1212(2)
and entitled to a net operating loss deduction as provided in §
26-51-427
may carry forward that deduction to the next-succeeding taxable year following the year of such net operating loss and annually thereafter for a total period of ten (10) years or until such net operating loss has been exhausted, whichever is earlier.
(b)
The net operating loss deduction must be carried forward in the order named above.
Acts 1991, No. 136, § 3; 1991, No. 137, § 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 12 - STEEL MILL TAX INCENTIVES (§§ 26-51-1201 — 26-51-1215) › Section 26-51-1214 - Sales of natural gas and electricity - Exemption

(a)
Sales of natural gas and electricity to taxpayers qualified under §
26-51-1212(1)
or §
26-51-1212(2)
for use in connection with the steel mill shall be exempt from the Arkansas gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, §
26-52-101
et seq., and the Arkansas compensating use tax, levied by the Arkansas Compensating Tax Act of 1949, §
26-53-101
et seq., and any other state or local tax administered under those acts.
(b)
The benefits of exemptions granted pursuant to this section shall become effective on July 1, 1991.
Acts 1991, No. 136, § 4; 1991, No. 137, § 4.
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 13 - WINNINGS WITHHOLDING ACT (§§ 26-51-1301 — 26-51-1310) › Section 26-51-1301 - Title

This subchapter may be cited as the "Winnings Withholding Act of 1987".
Acts 1987, No. 899, § 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 13 - WINNINGS WITHHOLDING ACT (§§ 26-51-1301 — 26-51-1310) › Section 26-51-1302 - Definitions

As used in this subchapter:
(1)
"Gaming winnings" means winnings from electronic games of skill based on the amount paid with respect to the wager without reduction for the amount of the wager; and
(2)
"Racing winnings" means winnings from live dog racing or horse racing based on the amount paid with respect to the wager less the amount of the wager.
Acts 1987, No. 899, § 2; 2007, No. 732, § 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 13 - WINNINGS WITHHOLDING ACT (§§ 26-51-1301 — 26-51-1310) › Section 26-51-1303 - Amount deducted and withheld for racing winnings - Credit

(a)
Every holder of a franchise to conduct dog racing or horse racing in this state making any single payment of racing winnings on a single wagering transaction of more than one thousand dollars ($1,000), if the amount of the racing winnings is at least three hundred (300) times as large as the amount wagered, shall deduct and withhold an amount equal to seven percent (7%) from the racing winnings.
(b)
The amount deducted and withheld from any person receiving racing winnings during the income year shall be credited against the tax liability of that person under the Income Tax Act of 1929, §
26-51-101
et seq.
Acts 1987, No. 899, § 2; 2007, No. 732, § 2; 2009, No. 655, § 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 13 - WINNINGS WITHHOLDING ACT (§§ 26-51-1301 — 26-51-1310) › Section 26-51-1304 - Administration

This subchapter shall be administered in accordance with the Arkansas Tax Procedure Act, §
26-18-101
et seq.
Acts 1987, No. 899, § 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 13 - WINNINGS WITHHOLDING ACT (§§ 26-51-1301 — 26-51-1310) › Section 26-51-1305 - Liability of franchise holders

Every holder of a franchise to conduct dog racing, horse racing, or electronic games of skill shall be liable for amounts required to be deducted and withheld by this subchapter regardless of whether the amounts were in fact deducted and withheld.
Acts 1987, No. 899, § 4; 2007, No. 732, § 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 13 - WINNINGS WITHHOLDING ACT (§§ 26-51-1301 — 26-51-1310) › Section 26-51-1306 - Withholding return and payment for racing winnings

Every franchise holder required to deduct and withhold income tax from racing winnings under this subchapter shall file, within sixty (60) days after the termination of its racing season, a withholding return as prescribed by the Secretary of the Department of Finance and Administration and pay over to the secretary the full amount required to be deducted and withheld from the racing winnings by the franchise holder for the income year.
Amended by Act 2019, No. 910,§ 3777, eff. 7/1/2019.
Acts 1987, No. 899, § 5; 2007, No. 732, § 4.
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 13 - WINNINGS WITHHOLDING ACT (§§ 26-51-1301 — 26-51-1310) › Section 26-51-1307 - Annual statement of withholding for racing winnings

(a)
Every franchise holder required to deduct and withhold income tax from racing winnings under this subchapter shall file an annual statement of withholding for each person receiving racing winnings subject to withholding under this subchapter.
(b)
(1)
The annual statement shall be in the form prescribed by the Secretary of the Department of Finance and Administration and shall be filed with the secretary.
(2)
Two (2) copies of the statement shall be furnished to each person who had received racing winnings during the income year before January 31 following the close of the income year.
(c)
The statement shall show:
(1)
The name and withholding account number of the franchise holder;
(2)
The name and address of the person who had received the racing winnings and his or her taxpayer identification number;
(3)
The total amount of the racing winnings subject to withholding paid by the franchise holder to the recipient of the racing winnings;
(4)
The total amount withheld from the recipient's racing winnings by the franchise holder pursuant to this subchapter for the income year; and
(5)
Such other information as the secretary shall require by rule.
Amended by Act 2019, No. 315,§ 2980, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 3779, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3778, eff. 7/1/2019.
Acts 1987, No. 899, § 6; 2007, No. 732, § 5; 2009, No. 655, § 9.
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 13 - WINNINGS WITHHOLDING ACT (§§ 26-51-1301 — 26-51-1310) › Section 26-51-1308 - Duties of franchise holders and payees

(a)
Every holder of a franchise to conduct dog racing, horse racing, or electronic games of skill who fails to withhold or pay to the Secretary of the Department of Finance and Administration any sums required by this subchapter to be withheld and paid shall be personally and individually liable therefor. Any sum or sums withheld in accordance with the provisions of this subchapter shall be deemed to be held in trust for the State of Arkansas and shall be recorded by the franchise holder in a ledger account so as to clearly indicate the amount of tax withheld and that the amount is the property of the State of Arkansas.
(b)
Every person who is to receive a payment of racing winnings or gaming winnings that are subject to this subchapter shall furnish the person making the payment a statement, made under penalties of perjury, containing the name, address, and taxpayer identification number of the person receiving the payment and of each person entitled to any portion of the payment.
Amended by Act 2019, No. 910,§ 3780, eff. 7/1/2019.
Acts 1987, No. 899, §§ 3, 5; 2007, No. 732, § 6.