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15-4-3602. Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-4-3602. Definitions.
As used in this subchapter:
(1) “Applicable percentage” means:
(A) Zero percent (0%) for the first two (2) credit allowance dates;
(B) Twelve percent (12%) for the third, fourth, and fifth credit allowance dates; and
(C) Eleven percent (11%) for the sixth and seventh credit allowance dates;
(2) “Credit allowance date” means with respect to a qualified equity investment:
(A) The date on which the qualified equity investment is initially made; and
(B) Each of the subsequent six (6) anniversary dates of the date on which the qualified equity investment was initially made;
(3) “Letter ruling” means a written interpretation of law to a specific set of facts provided by an applicant requesting the written interpretation from the Arkansas Economic Development Commission;
(4) “Long-term debt security” means a debt instrument issued by a qualified community development entity, at par value or a premium, with an original maturity date of at least seven (7) years from the date of its issuance without acceleration of repayment, amortization, or prepayment features before its original maturity date;
(5) “Purchase price” means the amount paid to the issuer of a qualified equity investment for a qualified equity investment;
(6)(A) “Qualified active low-income community business” means the same as defined in 26 U.S.C. § 45D and 26 C.F.R. § 1.45D-1, as they existed on January 1, 2013, if:
(i) At the time of the qualified community development entity's investment in or loan to the corporation, limited liability company, association, partnership, or other business entity, the corporation, limited liability company, association, partnership, or other business entity meets the United States Small Business Administration size eligibility stand
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-4-3602
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:15-4-3602
Source file: gov.ar.code.title.15.odt
Pages: Not recorded – Not recorded
Passage SHA-256: f9dcd908bacdcb2ac015e2295b99d16e8c0690fc582cbed5911087694111932f
Source location: content.xml paragraph 6283
Stored source content
15-4-3602. Definitions.
As used in this subchapter:
(1) “Applicable percentage” means:
(A) Zero percent (0%) for the first two (2) credit allowance dates;
(B) Twelve percent (12%) for the third, fourth, and fifth credit allowance dates; and
(C) Eleven percent (11%) for the sixth and seventh credit allowance dates;
(2) “Credit allowance date” means with respect to a qualified equity investment:
(A) The date on which the qualified equity investment is initially made; and
(B) Each of the subsequent six (6) anniversary dates of the date on which the qualified equity investment was initially made;
(3) “Letter ruling” means a written interpretation of law to a specific set of facts provided by an applicant requesting the written interpretation from the Arkansas Economic Development Commission;
(4) “Long-term debt security” means a debt instrument issued by a qualified community development entity, at par value or a premium, with an original maturity date of at least seven (7) years from the date of its issuance without acceleration of repayment, amortization, or prepayment features before its original maturity date;
(5) “Purchase price” means the amount paid to the issuer of a qualified equity investment for a qualified equity investment;
(6)(A) “Qualified active low-income community business” means the same as defined in 26 U.S.C. § 45D and 26 C.F.R. § 1.45D-1, as they existed on January 1, 2013, if:
(i) At the time of the qualified community development entity's investment in or loan to the corporation, limited liability company, association, partnership, or other business entity, the corporation, limited liability company, association, partnership, or other business entity meets the United States Small Business Administration size eligibility standards established in 13 C.F.R. § 121.101-201, as it existed on January 1, 2013; and
(ii)(a) The corporation, limited liability company, association, partnership, or other business entity agrees to retain or create jobs that pay an average wage of at least one hundred fifteen percent (115%) of the federal poverty income guidelines for a family of four (4) for the census tract.
(b) The commission may waive the requirement stated in subdivision (6)(A)(ii)(a ) of this section if the commission determines that an investment in the proposed active qualified low-income community business will have a positive impact on the community.
(B) A corporation, limited liability company, association, partnership, or other business entity will be considered a qualified low-income community business for the duration of the qualified community development entity's investment in or loan to the corporation, limited liability company, association, partnership, or other business entity if the relevant qualified community development entity reasonably expects, at the time it makes an investment or loan, that the corporation, limited liability company, association, partnership, or other business entity will continue to satisfy the requirements for being a qualified active low-income community business other than the requirements stated in subdivision (6)(A)(i) of this section throughout the entire period of the investment or loan.
(C) “Qualified active low-income community business” does not include the following:
(i)(a) A corporation, limited liability company, association, partnership, or other business entity that is the beneficiary of an incentive under § 15-4-2705, § 15-4-2706(b), or § 15-4-2706(c)(2).
(b) However, the commission may waive the requirement stated in subdivision (6)(C)(i)(a ) of this section if the commission determines that an investment in the proposed active qualified low-income community business will have a positive impact on the community;
(ii)(a) Any industry excluded under a rule of the commission.
(b) However, the commission may waive the requirement stated in subdivision (6)(C)(ii)(a ) of this section if the commission determines that an investment in the proposed active qualified low-income community business will have a positive impact on the community; or
(iii)(a) A corporation, limited liability company, association, partnership, or other business entity that derives or projects to derive at least fifteen percent (15%) of its annual revenue from the rental or sale of real estate.
(b) However, the restriction in subdivision (6)(C)(iii)(a ) of this section does not apply to a corporation, limited liability company, association, partnership, or other business entity that is controlled by or under common control with another corporation, limited liability company, association, partnership, or other business entity that:
(1) Does not derive or project to derive at least fifteen percent (15%) of its annual revenue from the rental or sale of real estate; and
(2) Is the primary tenant of the real estate leased from the corporation, limited liability company, association, partnership, or other business entity;
(7)(A) “Qualified community development entity” means the same as defined in 26 U.S.C. § 45D, as it existed on January 1, 2013, if the corporation, limited liability company, association, partnership, or other business entity has entered into, for the current year or any prior year, an allocation agreement with the Community Development Financial Institutions Fund of the United States Department of the Treasury with respect to credits authorized under 26 U.S.C. § 45D that includes Arkansas within the service area stated in the allocation agreement.
(B) “Qualified community development entity” includes a qualified community development entity that is controlled by or under common control with a qualified community development entity described in this subdivision (7);
(8)(A) “Qualified equity investment” means an equity investment in or a long-term debt security issued by a qualified community development entity that:
(i) Is acquired after April 22, 2013, at its original issue solely in exchange for cash;
(ii) Has at least eighty-five percent (85%) of its cash purchase price used by the issuer to make qualified low-income community investments in qualified active low-income community businesses located in Arkansas by the first anniversary of the initial credit allowance date; and
(iii) Is designated by the issuer as a qualified equity investment under this subdivision (8) and is certified by the commission as not exceeding the limitation stated in § 15-4-3605(d).
(B) “Qualified equity investment” includes an investment that does not meet the requirements of subdivision (8)(A)(i) of this section if the investment was a qualified equity investment in the hands of a previous holder;
(9) “Qualified low-income community investment” means a capital or equity investment in or loan to a qualified active low-income community business; and
(10) “State premium tax liability” means:
(A) Tax liability incurred by a corporation, limited liability company, association, partnership, or other business entity under §§ 23-63-102 and 26-57-601 — 26-57-605, excluding any liability for taxes on a health insurance premium; or
(B) If the tax liability under subdivision (10)(A) of this section is eliminated or reduced, any tax liability imposed on an insurance company or other person that had premium tax liability under the laws of the state.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Allowance of credit**
(1) **In general** — For purposes of section 38, in the case of a taxpayer who holds a qualified equity investment on a credit allowance date of such investment which occurs during the taxable year, the new markets tax credit determined under this section for such taxable year is an amount equal to the applicable percentage of the amount paid to the qualified community development entity for such investment at its original issue.
(2) **Applicable percentage** — For purposes of paragraph (1), the applicable percentage is—
(A) 5 percent with respect to the first 3 credit allowance dates, and
(B) 6 percent with respect to the remainder of the credit allowance dates.
(3) **Credit allowance date** — For purposes of paragraph (1), the term “credit allowance date” means, with respect to any qualified equity investment—
(A) the date on which such investment is initially made, and
(B) each of the 6 anniversary dates of such date thereafter.
**(b) Qualified equity investment** For purposes of this section—
(1) **In general** — The term “qualified equity investment” means any equity investment in a qualified community development entity if—
(A) such investment is acquired by the taxpayer at its original issue (directly or through an underwriter) solely in exchange for cash,
(B) substantially all of such cash is used by the qualified community development entity to make qualified low-income community investments, and
(C) such investment is designated for purposes of this section by the qualified community development entity.
Such term shall not include any equity investment issued by a qualified community development entity more than 5 years after the date that such entity receives an allocation under subsection (f). Any alloc
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 45D
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 45D. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 269
TITLE 26—INTERNAL REVENUE CODE
§ 45D
Amendment by section 1275(c)(4) of Pub. L. 99–514 ap-
plicable to taxable years beginning after Dec. 31, 1986,
with certain exceptions and qualifications, see section
1277 of Pub. L. 99–514, set out as a note under section 931
of this title.
Pub. L. 99–514, title XVIII, § 1879(b)(3), Oct. 22, 1986, 100
Stat. 2906, provided that: ‘‘The amendments made by
this subsection [amending this section] shall apply to
amounts paid or incurred after December 31, 1982, in
taxable years ending after such date.’’
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 474(g) of Pub. L. 98–369 appli-
cable to taxable years beginning after Dec. 31, 1983, and
to carrybacks from such years, see section 475(a) of
Pub. L. 98–369, set out as a note under section 21 of this
title.
Amendment by section 612(e)(1) of Pub. L. 98–369, ap-
plicable to interest paid or accrued after December 31,
1984, on indebtedness incurred after December 31, 1984,
see section 612(g) of Pub. L. 98–369, set out as an Effec-
tive Date note under section 25 of this title.
EFFECTIVE DATE
Pub. L. 97–414, § 4(d), Jan. 4, 1983, 96 Stat. 2056, pro-
vided that: ‘‘The amendments made by this section [en-
acting this section and amending sections 280C and 6096
of this title] shall apply to amounts paid or incurred
after December 31, 1982, in taxable years ending after
such date.’’
SAVINGS PROVISION
For provisions that nothing in amendment by section
401(d)(1)(D)(iii) of Pub. L. 115–141 be construed to affect
treatment of certain transactions occurring, property
acquired, or items of income, loss, deduction, or credit
taken into account prior to Mar. 23, 2018, for purposes
of determining liability for tax for periods ending after
Mar. 23, 2018, see sectio
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 45D
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 45D. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-4-2705. Job-creation tax credit.
(a) There is established a job-creation tax credit to encourage:
(1) The creation of new jobs; and
(2) Business growth and expansion.
(b) An application for the income tax credit under this section shall be submitted to the Arkansas Economic Development Commission.
(c) To receive this credit, 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:
(1) For tier 1 counties, the annual payroll threshold is at least one hundred twenty-five thousand dollars ($125,000);
(2) For tier 2 counties, the annual payroll threshold is at least one hundred thousand dollars ($100,000);
(3) For tier 3 counties, the annual payroll threshold is at least seventy-five thousand dollars ($75,000); and
(4) For tier 4 counties, the annual payroll threshold is at least fifty thousand dollars ($50,000).
(d)(1) The credit earned under this section is a percentage of the payroll of the new full-time permanent employees hired following the date of the approved financial incentive agreement.
(2) The percentage shall be determined by the county tier in which the project is located, as follows:
(A) For tier 1 counties, the credit is one percent (1%) of the payroll for the new full-time permanent employees of the business;
(B) For tier 2 counties, the credit is two percent (2%) of the payroll for the new full-time permanent employees of the business;
(C) For tier 3 counties, the credit is three percent (3%) of the payroll for the new full-time permanent employees of the business; and
(D) For tier 4 counties, the credit is four percent (4%) of the payroll for the new full-time permanent employees of the business.
(3) To qualify
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-4-2705
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 15-4-2705. This identifies an authority to review, not proof of applicability.
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
15-4-3605. Certification of qualified equity investments.
(a)(1)(A)(i) A qualified community development entity that seeks to have an equity investment or a long-term debt security designated as a qualified equity investment eligible for a tax credit under this subchapter shall apply to the Arkansas Economic Development Commission.
(ii) The commission shall begin accepting applications on July 15, 2013.
(B)(i) If the qualified community development entity seeks to have a long-term debt security designated as a qualified equity investment under this section, the qualified community development entity shall not make cash interest payments on the long-term debt security during the period beginning on the date of issuance and ending on the final credit allowance date in an amount that exceeds the cumulative operating income, as determined under 26 C.F.R. § 1.45D-1, as it existed on January 1, 2013, of the qualified community development entity for that period before giving effect to interest expense on the long-term debt security.
(ii) However, the holder's ability to accelerate payments on the long-term debt security instrument in situations in which the issuer has defaulted on covenants designed to ensure compliance with this subchapter or 26 U.S.C. § 45D, as it existed on January 1, 2013, shall not be affected by this subchapter.
(2)(A) A qualified community development entity seeking certification of a qualified equity investment shall submit an application to the commission.
(B) The application submitted under subdivision (a)(2)(A) of this section shall include the following:
(i) Evidence of the applicant's certification as a qualified community development entity, including evidence that the service area of the applicant includes Arkansas;
(ii) A copy
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-4-3605
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 15-4-3605. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-102. Retaliation for foreign taxes, fees, restrictions, etc.
(a) The Insurance Commissioner shall impose upon any insurer or upon the agent or representative of that insurer of any other state or any foreign country doing business in the State of Arkansas the same taxes, licenses, and other fees, in the aggregate, and the same fines, penalties, deposit requirements or other material requirements, obligations, prohibitions, or restrictions that are imposed upon Arkansas insurers or upon their agents or representatives by the laws of the other state or its political subdivisions or the other country or its provinces or political subdivisions.
(b) This section does not apply to:
(1) Application fees, examination fees, license fees, appointment fees, and continuation fees for agents, adjusters, service representatives, or consultants; or
(2)(A) Personal income taxes, ad valorem taxes on real or personal property, or special purpose obligations, fees, or assessments imposed by the other state in connection with particular kinds of insurance, other than property insurance.
(B) However, the commissioner shall consider deductions from premium taxes or other taxes payable allowed because of real estate or personal property taxes paid in determining the propriety and extent of retaliatory action under this section.
(c) For reporting years beginning on or after January 1, 2005, neither this section nor § 23-63-103 shall apply to any foreign insurer if more than fifteen percent (15%) of its capital stock is owned by a corporation organized under the laws of this state and domiciled within this state.
(d) In addition to the funds now appropriated and set aside for the use and benefit of firemen's relief and pension funds by § 24-11-809, there is appropriated and
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-102
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 23-63-102. This identifies an authority to review, not proof of applicability.