Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Rule 006.05.94-001 - Regulation 1993-11 Enterprise Zone Act of 1993

Current through Register Vol. 49, No. 6, June, 2024
Pursuant to Ark. Code Ann. §
								26-18-301,
				the Commisoner Of Revenues for the State of Arkansas promulgates the following
				regulation for the enforcement and"administration of Act 947 of 1993.
SECTION 1 -
DEFINITIONS.
(1) 'Act' means the Arkansas Enterprise Zone
			 Act of 1993;
(2) 'Approved
			 Enterprise Zone Business' means a business which has been approved by the
			 Department to receive benefits under the Act;
(3) 'Average hourly wage' means the average
			 wage of the net new permanent employees based an payroll fox the .mast recent
			 quarter reported to the Employment Security Division, and is commuted by using
			 the total of the net new permanent employees' reported taxable earnings,
			 including overtime pay, divided by the number of weeks worked, divided by the
			 average hours worked per week per net new permanent employee; Salaried
			 employees are deemed to have worked forty (40) hours per week for the purpose
			 of calculating 'average hourly wage' and 'most recent quarter reported' in the
			 tax year during which the income tax credits were earned;
(4) 'Chief Fiscal Officer of the State' means
			 the Director of the Department of Finance and Administration;
(5) 'Commission' means the Arkansas
			 Industrial Development Commission;
(6) 'Corporate headquarters' means the home
			 or center of operations, including research and development, of a national or
			 multi-national corporation;
(7)
			 'Department' means the Department of Industrial Development;
(8) 'Director' is the director of the
			 department;
(9) 'Governing
			 authority' means the quorum court of a county or the governing body of a
			 municipality;
(10) 'New permanent
			 employee' means a employee who is an Arkansas resident when hired and who was
			 hired as a result of the project and has worked an average of at least thirty
			 (30) hours per week for at least twenty-six (26) consecutive weeks. To be
			 counted as a new permanent employee for the purpose of qualifying for the tax
			 credits and incentives, the employee must have been an Arkansas resident during
			 the tax year in which the tax credits or incentives were earned.
(11) 'Net new permanent employee' means a new
			 permanent employee who was not employed by the taxpayer during the preceding
			 tax year. However, if during the tax year in which a new permanent employee was
			 hired the employee did not work the requisite number of weeks to qualify as a
			 new permanent employee for that tax year, then that employee may be counted as
			 a net new permanent employee for the tax year in which he or she meets the
			 requirement. Example: An employee hired August 1, 1993 could not qualify as a
			 new permanent employee for 1993 because he could not have worked 26 consecutive
			 weeks in 1993. However, if in 1994 that employee completes his 26th consecutive
			 week of work with an average of 30 hours of work per week since the date he was
			 hired, that employee will qualify as a net new permanent employee for the 1994
			 tax year. The number of net new permanent employees shall be equal to the total
			 number of new permanent employees for the current tax year minus the total
			 number of new permanent employees for the previous tax year.
(12) 'Office sector business' means control
			 centers that influence the environment in which data processing, customer
			 service, credit accounting, telemarketing, claims processing, and other
			 administrative functions that act as production centers. Also referred to as
			 'back office industry';
(13)
			 'Program' means the Arkansas Enterprise Zone Act of 1993;
(14) 'Project' means:
(A) All activities and costs associated with
			 the construction of a new plant or facility; or
(B) The expansion of an established plant or
			 facility by adding to the building or production equipment or support
			 infrastructure, or both; or
(C) The
			 replacement of production or processing equipment or support infrastructure, or
			 both;
(15) 'Tax year'
			 means the calendar year, or the fiscal year ending during such calendar year,
			 upon the basis of which taxable income is computed. In the case of a return
			 made for a fractional part of a year, 'tax year' means the period for which
			 such return is made.
(16) 'Trucking
			 sector business' means a business that comes within the Standard Industrial
			 Classification (SIC) number 4231;
(17) 'Standard Industrial Classification
			 Numbers' means the numbers used to classify businesses in the STANDARD
			 INDUSTRIAL CLASSIFICATION MANUAL published by the Office of Management and
			 Budget, Executive Office of the President.