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15-4-2709. Targeted business special incentive.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-4-2709. Targeted business special incentive.
(a) A special incentive based on the payroll of targeted businesses in the state may be offered, at the discretion of the Director of the Arkansas Economic Development Commission, to:
(1) Encourage the development of jobs that pay significantly more than the average hourly wage in the county in which the targeted business locates or the state average hourly wage if the state average hourly wage is less than the county average hourly wage; and
(2) Provide an incentive to assist with the start-up of businesses targeted for growth.
(b) To qualify for the special incentive provided by subsection (c) of this section, a business shall:
(1) Be identified by the Arkansas Economic Development Commission as being one of those business sectors targeted for growth under § 15-4-2703;
(2)(A) Have an annual payroll of the business for Arkansas taxpayers of not less than one hundred thousand dollars ($100,000) or more than one million dollars ($1,000,000).
(B) The payroll requirement under subdivision (b)(2)(A) of this section applies only to the initial eligibility determination and does not preclude qualified businesses from receiving incentives if, at any time after the financial incentive agreement has been approved, actual payroll does not satisfy the requirements in subdivision (b)(2)(A) of this section;
(3) Show proof of an equity investment of two hundred fifty thousand dollars ($250,000) or more; and
(4) Pay average hourly wages in excess of the lesser of one hundred fifty percent (150%) of the county or state average hourly wage for the county in which the targeted business locates or expands.
(c)(1) A targeted business may earn an income tax credit equal to ten percent (10%) of its annual payroll, with the m
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-4-2709
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:15-4-2709
Source file: gov.ar.code.title.15.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 36b6435671cd839fdd6109c6b580f176918ca8aaf1e0d23c4839fabc002197cd
Source location: content.xml paragraph 4831
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15-4-2709. Targeted business special incentive.
(a) A special incentive based on the payroll of targeted businesses in the state may be offered, at the discretion of the Director of the Arkansas Economic Development Commission, to:
(1) Encourage the development of jobs that pay significantly more than the average hourly wage in the county in which the targeted business locates or the state average hourly wage if the state average hourly wage is less than the county average hourly wage; and
(2) Provide an incentive to assist with the start-up of businesses targeted for growth.
(b) To qualify for the special incentive provided by subsection (c) of this section, a business shall:
(1) Be identified by the Arkansas Economic Development Commission as being one of those business sectors targeted for growth under § 15-4-2703;
(2)(A) Have an annual payroll of the business for Arkansas taxpayers of not less than one hundred thousand dollars ($100,000) or more than one million dollars ($1,000,000).
(B) The payroll requirement under subdivision (b)(2)(A) of this section applies only to the initial eligibility determination and does not preclude qualified businesses from receiving incentives if, at any time after the financial incentive agreement has been approved, actual payroll does not satisfy the requirements in subdivision (b)(2)(A) of this section;
(3) Show proof of an equity investment of two hundred fifty thousand dollars ($250,000) or more; and
(4) Pay average hourly wages in excess of the lesser of one hundred fifty percent (150%) of the county or state average hourly wage for the county in which the targeted business locates or expands.
(c)(1) A targeted business may earn an income tax credit equal to ten percent (10%) of its annual payroll, with the maximum payroll credit not to exceed one hundred thousand dollars ($100,000) in any year during the term of the financial incentive agreement.
(2)(A) The term of the financial incentive agreement shall be established by the director for a period not to exceed five (5) years.
(B) The term of the financial incentive agreement for targeted businesses earning a tax credit under this subsection shall begin on January 1 of the year following the year in which the financial incentive agreement was approved.
(C) The director may allow a qualified targeted business to sell any income tax credits earned through one (1) or more incentives authorized by this subchapter.
(d)(1) To sell income tax credits earned through incentives authorized by this subchapter, the targeted business shall apply to the commission and furnish information necessary to facilitate the sale of income tax credits.
(2)(A) Any unused tax credits may be carried forward for up to nine (9) years after the year in which the credit was first earned or until exhausted, whichever occurs first.
(B) Taxpayers purchasing tax credits under this subsection shall be subject to the same carry-forward provisions as the targeted business that earned the credits.
(C) The purchase of the tax credits does not establish a new carry-forward period for the ultimate recipient.
(e) A targeted business claiming or selling tax credits earned under this section or § 15-4-2708 shall not receive the credit granted by § 26-51-1102(b) for the same expenditures.
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Arkansas Code — all titles (historical 2020) · legal_authorities
15-4-2703. Definitions.
As used in this subchapter:
(1) “Applied research” means any activity that applies the findings of basic research or other existing knowledge toward discovering new scientific knowledge that has specific commercial objectives with respect to new products, services, processes, or methods;
(2)(A) “Average hourly wage” means the amount obtained when payroll, as defined in this section, is divided by the number of hours worked to earn the payroll.
(B) For the purpose of subdivision (2)(A) of this section, forty (40) hours per week shall be used as the number of hours worked for a salaried employee;
(3) “Basic research” means the pursuit of new scientific knowledge or understanding that does not have specific immediate commercial objectives, although the pursuit may be in fields of present or potential commercial interest;
(4) “Contractual employee” means an employee who:
(A) May be included in the payroll calculations of a qualified business under this subchapter and is under the direct supervision of the qualified business receiving incentives under this subchapter, but is an employee of a business other than the one receiving incentives under this subchapter;
(B) Otherwise meets the requirements of a new full-time permanent employee of the qualified business receiving incentives under this subchapter; and
(C) Receives a benefits package comparable to direct employees of the qualified business receiving incentives under this subchapter;
(5)(A) “Corporate headquarters” means a facility or portion of a facility where the majority of an eligible business's financial, human resources, engineering, legal, strategic planning, information technology, corporate communications, marketing, or other headquarters-related functions are effectu
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-4-2703
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 15-4-2703. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-4-2708. Research and development tax credits.
(a)(1)(A) Eligible businesses that have not previously been approved for incentives under this subsection and that conduct in-house research that has been approved for federal research and development tax credits may qualify, at the discretion of the Director of the Arkansas Economic Development Commission, for an income tax credit of up to twenty percent (20%) of the incremental amount spent on in-house research that exceeds the baseline established in the preceding year, for a period of five (5) years, subject to extension at the discretion of the director.
(B) The initial baseline for a qualified business new to the incentives offered under this subsection is the amount of research conducted in the state as claimed for federal research and development tax credits during the most recent year.
(C) Tax credits for the first year shall be calculated based on the incremental eligible expenditures for research and development at the end of the first year minus the research and development expenditures as reported by the qualified business for research and development tax credits under subdivision (a)(1)(B) of this section.
(D) Tax credits for succeeding years shall be calculated as the difference between the current year's research conducted in the state and the previous year's research conducted in the state.
(2) The income tax credit may be used to offset up to one hundred percent (100%) of a qualified business's annual income tax liability.
(3) Unused tax credits may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first.
(4) A qualified business claiming tax credits earned under this subsection shall not
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-4-2708
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 15-4-2708. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
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 developmen
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-1102
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-51-1102. This identifies an authority to review, not proof of applicability.