Arkansas Administrative Code › Agency 168 - Arkansas Economic Development Commission › Rule 168.00.01-005 - Arkansas Emerging Technology Development Act

Current through Register Vol. 49, No. 6, June, 2024
I.
Introduction
The Arkansas Emerging Energy Technology Development Act
			 of 1999
was passed by the 82 
			 nd  General Assembly of the State of
			 Arkansas and provides an economic incentive to manufacturers of high growth
			 energy technologies that are on the verge of full entry into the world market.
Act
976 of 1999 establishes a state income tax credit of 50
			 percent of the cost of purchasing or constructing a facility that designs,
			 develops, or produces photovoltaics (solar cells), electric vehicle components,
			 or fuel cells. Act 1284 of 2001 expanded the list of technologies to include
			 the designing, developing or producing of Stirling engines, microturbines and
			 nanotechnology devices as being eligible for the benefits of this incentive.
			 Since nanotechnology devices may or may not be energy related, the term energy
			 was dropped from the title of this act. Eligible costs include land,
			 infrastructure, renovation, building improvements, and machinery.
The major goals of Arkansas' economic development package are to
			 provide an environment that creates a diversity of economic opportunities for
			 Arkansas; expand the state's ability to attract higher paying jobs; and enhance
			 recruitment, training, and retention of a talented Arkansas workforce.
For additional information contact:
Arkansas Department of Economic Development
Business Development Section
One Capitol Mall
Little Rock, AR 72201
(501) 682-7319
II.
Definitions
A.
"Department"
means the Department of Economic Development.
B.
"Director"
is the
		  Director of the Department of Economic Development.
C.
"Electric vehicle
		  equipment"
means those products designed, manufactured, and
		  produced as original equipment components and intended for express use in an
		  electric powered vehicle which may qualify for registration and licensure as a
		  passenger vehicle by the State of Arkansas.
D.
"Electric powered
		  vehicles"
may include vehicles powered only by electric batteries,
		  vehicles powered by a combination of electric batteries and internal combustion
		  engines, and vehicles powered by fuel cell equipment. Electric powered vehicles
		  must be capable of being licensed by the State of Arkansas for use on any
		  highway, including interstate highways.
E.
"Emerging energy
		  technology(ies)"
include photovoltaic devices, electric vehicle
		  equipment, fuel cells, microturbines and Stirling engines.
F.
"Facility(ies)"
shall be taken to mean those buildings and equipment necessary for the design,
		  development, and production of emerging energy technologies for which eligible
		  costs, for the purpose of this tax credit, include land acquisition,
		  infrastructure improvements, renovation, building improvements, machinery, and
		  other manufacturing equipment.
G.
"Fuel cells"
means those products designed,
		  manufactured, and produced to convert hydrocarbon fuel to heat and electricity
		  by electrochemical means.
H.
"Microturbines"
means one (1) megawatt or smaller,
		  high-speed generator power plant that included the turbine, compressor,
		  generator, all of which are on a single shaft, as well as the power electronics
		  to deliver power to the grid.
I.
"Nanotechnology"
means the materials and systems whose
		  structures and components exhibit novel and significantly improved physical,
		  chemical, and biological properties, phenomena, and processes due to their
		  nanoscale size.
J.
"Photovoltaic devices"
means those products designed,
		  manufactured, and produced to convert sunlight directly into
		  electricity.
K.
		  "
Project start date"
means the date that the
		  application is received by the Department and the date after which eligible
		  costs may be incurred for purposes of this credit.
L.
"Stirling engine"
means a high-temperature, high-pressure externally heated engine that uses an
		  alternatively heated and cooled working gas.
M.
"Taxable year"
means the calendar year, or the fiscal year ending during such calendar year,
		  upon the basis of which taxable income is computed.
N.
"Taxpayer"
includes any individual, fiduciary, or corporation subject to Arkansas State
		  Income Tax.