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15-4-2712. Restrictions.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-4-2712. Restrictions.
(a) Except as provided in subsection (b) of this section, the incentives established by this subchapter may be combined.
(b)(1) The investment tax credit authorized in § 15-4-2706(c) shall not be combined with the sales and use tax refund authorized in § 15-4-2706(d) for the same project.
(2) The following incentives for targeted businesses may be combined with each other for the same project as long as multiple incentives are not claimed for the same expenditures but shall not be combined with any other incentives authorized in this subchapter during the period in which the qualified business receives incentives under this subchapter:
(A) The investment tax credit authorized under § 15-4-2706(b)(7) may be combined with:
(i) The research and development income tax credits authorized under § 15-4-2708(b); and
(ii) Either the:
(a) Payroll rebate program authorized under § 15-4-2707(e); or
(b) Payroll tax credit program authorized under § 15-4-2709;
(B) The sales and use tax refund authorized under § 15-4-2706(e) may be combined with:
(i) The research and development income tax credits authorized under § 15-4-2708(b); and
(ii) Either the:
(a) Payroll rebate program authorized under § 15-4-2707(e); or
(b) Payroll tax credit program authorized under § 15-4-2709;
(C) The payroll rebate program authorized under § 15-4-2707(e) may be combined with:
(i) The research and development income tax credits authorized under § 15-4-2708(b); and
(ii) Either the:
(a) Investment tax credit program authorized under § 15-4-2706(b)(7); or
(b) Sales and use tax refund program authorized under § 15-4-2706(e);
(D) The payroll income tax credit authorized under § 15-4-2709 may be combined with:
(i) The research and development incom
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-4-2712
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:15-4-2712
Source file: gov.ar.code.title.15.odt
Pages: Not recorded – Not recorded
Passage SHA-256: edce5d07a3b6331e1b782d5ff03cb1a76978483eb109f0852f6224e18c0379a3
Source location: content.xml paragraph 4952
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15-4-2712. Restrictions.
(a) Except as provided in subsection (b) of this section, the incentives established by this subchapter may be combined.
(b)(1) The investment tax credit authorized in § 15-4-2706(c) shall not be combined with the sales and use tax refund authorized in § 15-4-2706(d) for the same project.
(2) The following incentives for targeted businesses may be combined with each other for the same project as long as multiple incentives are not claimed for the same expenditures but shall not be combined with any other incentives authorized in this subchapter during the period in which the qualified business receives incentives under this subchapter:
(A) The investment tax credit authorized under § 15-4-2706(b)(7) may be combined with:
(i) The research and development income tax credits authorized under § 15-4-2708(b); and
(ii) Either the:
(a) Payroll rebate program authorized under § 15-4-2707(e); or
(b) Payroll tax credit program authorized under § 15-4-2709;
(B) The sales and use tax refund authorized under § 15-4-2706(e) may be combined with:
(i) The research and development income tax credits authorized under § 15-4-2708(b); and
(ii) Either the:
(a) Payroll rebate program authorized under § 15-4-2707(e); or
(b) Payroll tax credit program authorized under § 15-4-2709;
(C) The payroll rebate program authorized under § 15-4-2707(e) may be combined with:
(i) The research and development income tax credits authorized under § 15-4-2708(b); and
(ii) Either the:
(a) Investment tax credit program authorized under § 15-4-2706(b)(7); or
(b) Sales and use tax refund program authorized under § 15-4-2706(e);
(D) The payroll income tax credit authorized under § 15-4-2709 may be combined with:
(i) The research and development income tax credits authorized under § 15-4-2708(b); and
(ii) Either the:
(a) Investment tax credit authorized under § 15-4-2706(b)(7); or
(b) Sales and use tax refund program authorized under § 15-4-2706(e); and
(E) The research and development income tax credits authorized under § 15-4-2708(b) may be combined with:
(i) Either the:
(a) Payroll rebate program authorized under § 15-4-2707(e); or
(b) Payroll tax credit program authorized under § 15-4-2709; and
(ii) Either the:
(a) Investment tax credit program authorized under § 15-4-2706(b)(7); or
(b) Sales and use tax refund program authorized under § 15-4-2706(e).
(3) The investment tax credit authorized in § 15-4-2706(b) shall not be combined with the sales and use tax credit authorized in § 15-4-2706(e) for the same project.
(4) The job-creation tax credit authorized in § 15-4-2705 shall not be combined with the payroll rebate program authorized in § 15-4-2707.
(5) The investment tax credit authorized in § 15-4-2706(b) shall not be combined with the sales and use tax refund authorized in § 15-4-2706(d) for the same project.
(6) The investment tax credit authorized under § 15-4-2706(b) shall not be combined with the sales and use tax credit authorized under § 15-4-2706(c) for the same project.
(c) The following are discretionary incentives and are not available unless offered by the Arkansas Economic Development Commission:
(1) The payroll rebate program authorized in § 15-4-2707;
(2) The job-creation tax credit authorized in § 15-4-2709;
(3) The investment tax credit authorized in § 15-4-2706(b);
(4) The sales and use tax refund authorized in § 15-4-2706(e); and
(5) The research and development tax credits authorized in § 15-4-2708(a)-(c).
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Arkansas Code — all titles (historical 2020) · legal_authorities
15-4-2706. Investment tax incentives.
(a) There are established investment tax incentives to:
(1) Encourage capital investment for the long-term viability of businesses in the state; and
(2) Create new jobs.
(b)(1) The award of incentives under this section are at the discretion of the Director of the Arkansas Economic Development Commission.
(2) If offered, an application for an income tax credit under this section shall be submitted to the Arkansas Economic Development Commission.
(3) Eligibility for incentives under this section is dependent upon the tier in which the project is located, as follows:
(A) For tier 1 counties, the business shall invest five million dollars ($5,000,000) or more and have an annual payroll for new full-time permanent employees in excess of two million dollars ($2,000,000);
(B) For tier 2 counties, the business shall invest three million seven hundred fifty thousand dollars ($3,750,000) or more and have an annual payroll for new full-time permanent employees in excess of one million five hundred thousand dollars ($1,500,000);
(C) For tier 3 counties, the business shall invest three million dollars ($3,000,000) or more and have an annual payroll for new full-time permanent employees in excess of one million two hundred thousand dollars ($1,200,000); and
(D) For tier 4 counties, the business shall invest two million dollars ($2,000,000) or more and have an annual payroll for new full-time permanent employees in excess of eight hundred thousand dollars ($800,000).
(4) An approved financial incentive agreement shall be transmitted to the qualified business and the Department of Finance and Administration.
(5) A qualified business shall reach the investment threshold within four (4) years from the date of the approved fin
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-4-2706
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 15-4-2706. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-4-2707. Economic Development Incentive Fund — Payroll rebate.
(a) There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Economic Development Incentive Fund” of the Arkansas Economic Development Commission.
(b) The fund shall consist of revenues designated for this fund by the Department of Finance and Administration pursuant to approved financial incentive agreements entered into by the commission with qualified businesses.
(c) After the department has received and verified the certification of the payrolls of the qualified businesses for the payroll rebate authorized by this section, the department shall transfer the appropriate amount of money designated by the financial incentive agreements out of general revenues into a special account designated as special revenue for the fund.
(d)(1) The award of this incentive is at the discretion of the Director of the Arkansas Economic Development Commission and may be offered for a period of up to ten (10) years.
(2)(A) To receive an incentive under this section, a qualified business shall meet minimum annual payroll thresholds for new full-time permanent employees for the county tier in which the project is located, as follows:
(i) For tier 1 counties, the annual payroll threshold is at least two million dollars ($2,000,000);
(ii) For tier 2 counties, the annual payroll threshold is at least one million seven hundred fifty thousand dollars ($1,750,000);
(iii) For tier 3 counties, the annual payroll threshold is at least one million five hundred thousand dollars ($1,500,000); and
(iv) For tier 4 counties, the annual payroll threshold is at least one million two hundred fifty thousand dollars ($1,250,000).
(B)
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-4-2707
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 15-4-2707. 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
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. The source passage cites 15-4-2709. This identifies an authority to review, not proof of applicability.