Arkansas Administrative Code › Agency 168 - Arkansas Economic Development Commission › Rule 168.00.01-007 - Manufacturer's Investment Tax Credit Act - Paper / Allied

Current through Register Vol. 49, No. 6, June, 2024
I.
Introduction
The Manufacturer's Investment Tax Credit Act of 2001 is a program
			 designed to stimulate the expansion and modernization of facilities and
			 equipment of Arkansas companies with a federal Standard Industrial
			 Classification (SIC) Code 26 and engaged in the production of paper and allied
			 products. The incentive provided by this act offers a credit against the income
			 tax liability of the eligible company for making an investment, before December
			 31, 2004 of more than one hundred million dollars ($100,000,000).
If approved to participate in the Manufacturer's Investment Tax
			 Credit Act of 2001, a company may not receive benefits under Advantage Arkansas
			 (Arkansas Enterprise Zone Act of 1993, as amended) or InvestArk (Economic
			 Investment Tax Credit Act) for the same project.
For additional information contact:
Arkansas Department of Economic Development
Business Development Section
One Capitol Mall
Little Rock, Arkansas 72201
(501) 682-7675
II.
Definitions
A.
"Corporate or regional
		  headquarters"
means the home or center of operations, including
		  research and development, of a national or multinational corporation with no
		  retail sales to the general public.
B.
"Department"
means the Arkansas Department of Economic Development.
C.
"Director"
means
		  the director of the Arkansas Department of Economic Development.
D.
"Eligible
		  business"
means any person engaged in a business classified as
		  manufacturing paper and allied products in federal Standard Industrial
		  Classification Code 26, that has been in continuous operation in Arkansas for
		  at least two (2) years prior to the initial application to the Director of the
		  Department of Economic Development for income tax credits as provided for in
		  Act 1661 of 2001.
E.
"In continuous operation in Arkansas for at least two
		  years"
means the business applying for the tax credit shall have
		  on file with the Employment Security Division, employment reports dated at
		  least two years (8 reporting quarters) prior to the date of application for the
		  tax incentive.
F.
"Ineligible items"
shall include any expenditure which
		  cannot be attributed to the project or expenditures that are incurred more than
		  twelve (12) months prior to submission of an application unless otherwise
		  approved by the Director of the Department of Economic Development and the
		  Commissioner of Revenues.
G.
"Modernization"
means to increase efficiency or to
		  increase productivity of the business through investment in machinery and/or
		  equipment. Modernization does not include costs for routine maintenance,
		  defined as the replacement of existing machinery parts with like
		  parts.
H.
"No retail
		  sales to the general public"
means no walk-in "point of sale"
		  service.
I.
"Person"
means a person as defined by Arkansas Code
		  26-18-104.
J.
"Pre-construction costs"
shall mean the cost of
		  eligible items incurred prior to the start of construction, including project
		  planning costs, architectural fees, deposits and process payments on eligible
		  machinery and equipment, rights-of-way purchases, land, and purchase of mineral
		  rights.
K.
"Project"
means any construction, expansion or
		  modernization in Arkansas by an eligible business and the investment by the
		  eligible business shall exceed one hundred million dollars ($100,000,000)
		  between the effective date of Act 1661 of 2001 and December 31, 2004 for
		  projects involving either single or multiple locations within the State of
		  Arkansas, including the cost of the land, buildings, and equipment used in the
		  construction, expansion, or modernization and which construction, expansion, or
		  modernization has been approved by the Arkansas Department of Economic
		  Development as a construction, expansion, or modernization project which
		  qualifies for the credit under the provisions of Act 1661 of 2001.
L.
"Routine
		  maintenance"
means the replacement of existing machinery parts
		  with like parts.
M.
"Start of Construction"
shall mean any activity which
		  causes a physical change to the building and/or property identified as the site
		  of the approved project, excluding engineering surveys, soil tests, land
		  clearing, and extension of roads and utilities to the job site.