26-51-1702. Allowance and calculation of tax credit.

26-51-1702. Allowance and calculation of tax credit. (a) A taxpayer owning an interest in a qualified project shall be allowed a state tax credit, to be termed the Arkansas low-income housing tax credit, if the Arkansas Development Finance Authority issues an eligibility statement for that project. For any taxpayer which is, for state income tax purposes, taxed as a partnership or an S corporation, the tax credits allocated to the taxpayer shall be allocated to each partner, member or shareholder of the taxpayer in accordance with the provisions of the articles of incorporation, bylaws, partnership agreement, operating agreement or other agreement setting forth such allocation. (b) The Arkansas low-income housing tax credit available to a qualified project shall be calculated by multiplying an amount equal to the federal low-income housing tax credit for a qualified project for a federal tax period, by twenty percent (20%) and such amount shall be subtracted from the amount of state income or premium tax otherwise due from the taxpayer for the same tax period. (c) The Arkansas low-income housing tax credit shall be taken against the state income or premium taxes due from the taxpayer. The credit authorized by this subchapter shall not be refundable. Any amount of credit that exceeds the tax due for a taxable year may be carried forward to any of the five (5) subsequent taxable years or carried forward to any of the five (5) subsequent taxable years. (d) All or any portion of the Arkansas low-income housing tax credits may be allocated to parties who are eligible under the provisions of subsection (a) of this section. An owner of a qualified project shall certify to the Secretary of the Department of Finance and Administration the amount of the Arkansas low-income housing tax credit allocated to each taxpayer. (e) In the event that recapture of Arkansas low-income housing tax credits is required pursuant to § 26-51-1703(b), any statement submitted to the secretary as provided in this section shall include the proportion of the Arkansas low-income housing tax credit required to be recaptured, the identity of each taxpayer subject to the recapture and the amount of Arkansas low-income housing tax credit previously allocated to such taxpayer. (f) The total amount of tax credit granted under this subchapter shall not exceed two hundred fifty thousand dollars ($250,000) in any taxable year. (g)(1) A grant payment made under § 1602 of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, is excluded from gross income if the grant payment is made in lieu of a federal low-income housing tax credit. (2) The grant recipient shall comply with the requirements of this subchapter in the same manner as if the grant recipient had received a federal low-income housing tax credit.