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15-4-3607. Recapture.

Arkansas Code — all titles (historical 2020) · legal_authorities

15-4-3607. Recapture.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-4-3607

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:15-4-3607
Source file: gov.ar.code.title.15.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 8aa966bf7f2083e581497c7ac99136c5f8843ca055288c11c74137ad49b3bf00

Source location: content.xml paragraph 6412

Stored source content

15-4-3607. Recapture. The Arkansas Economic Development Commission shall recapture the tax credit allowed under this subchapter from the taxpayer that claimed the tax credit if: (1)(A) Any amount of a federal tax credit available with respect to a qualified equity investment that is eligible for a tax credit under this subchapter is recaptured under 26 U.S.C. § 45D, as it existed on January 1, 2013. (B) If a recapture occurs under subdivision (1)(A) of this section, the commission's recapture shall be proportionate to the federal recapture with respect to the qualified equity investment; (2)(A) The issuer redeems or makes principal repayment with respect to a qualified equity investment before the seventh anniversary of the issuance of the qualified equity investment. (B) If a recapture occurs under subdivision (2)(A) of this section, the commission's recapture shall be proportionate to the amount of the redemption or repayment with respect to the qualified equity investment; (3)(A) The issuer fails to: (i) Invest an amount equal to eighty-five percent (85%) of the purchase price of the qualified equity investment in qualified low-income community investments in Arkansas within twelve (12) months of the issuance of the qualified equity investment; and (ii) Maintain the minimum investment level required under subdivision (3)(A)(i) of this section until the last credit allowance date for the qualified equity investment. (B)(i) A qualified equity investment shall be considered held by an issuer even if a qualified low-income community investment has been sold or repaid if the issuer reinvests an amount equal to the capital returned to or recovered by the issuer from the original qualified low-income community investment, exclusive of any profits realized, in another qualified low-income community investment within twelve (12) months of the receipt of such returned capital. (ii) Periodic amounts received during a calendar year as repayment of principal on a loan that is a qualified low-income community investment shall be treated as continuously invested in a qualified low-income community investment if the amounts are reinvested in one (1) or more qualified low-income community investments by the end of the following year. (C) An issuer shall not be required to reinvest capital returned from a qualified low-income community investment, and the qualified low-income community investment shall be considered held by the issuer through the seventh anniversary of the qualified equity investment's issuance after the earlier of: (i) The sixth anniversary of the credit allowance date of the qualified equity investment, the proceeds of which were used to make the qualified low-income community investment; or (ii) The date by which a qualified community development entity has made qualified low-income community investments with the proceeds of such qualified equity investment on a cumulative basis equal to at least one hundred fifty percent (150%) of such proceeds; or (4) At any time before the final credit allowance date of a qualified equity investment, the issuer uses the cash proceeds of the qualified equity investment to make qualified low-income community investments in any one (1) or more qualified active low-income community businesses, including without limitation affiliated qualified active low-income community businesses and excluding reinvestments of capital returned or repaid with respect to earlier qualified equity investments in the qualified active low-income community business and its affiliates in excess of twenty-five percent (25%) of the cash proceeds of all qualified equity investments issued by the issuer under this section.

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 45D — New markets tax credit

**(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

26 U.S.C. § 45D — New markets tax credit

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.