Browse Arkansas Code titles and sections
26-51-505. Establishment or expansion of manufacturing enterprise — Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-505. Establishment or expansion of manufacturing enterprise — Definitions.
(a) There shall be allowed a credit against the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., § 26-51-205, and § 26-51-303, an amount as determined in subsection (c) of this section, for any taxpayer who establishes or expands a manufacturing enterprise in the State of Arkansas which results in the creation of new additional full-time or part-time jobs within this state.
(b)(1) As used in this section, “manufacturing” refers to and includes those operations commonly understood within their ordinary meaning and shall also include mining, quarrying, refining, extracting oil and gas, cotton ginning, the drying of rice, soybeans, and other grains, the manufacturing of feed, processing of poultry or eggs and livestock, and the hatching of poultry.
(2)(A) A “new employee” shall be a person residing and domiciled in this state, hired by the taxpayer to fill a new additional job in this state which previously did not exist in the manufacturing enterprise during the taxable year for which the credit allowed by this section is claimed.
(B) To qualify for the credit provided in this section, the employment of a new employee by the manufacturer must increase the total number of employees who are employed by the manufacturer. In no case shall the new employees allowed for the purpose of the credit exceed the total increase in employment.
(C) A person shall be deemed to be so engaged if that person performs duties in connection with the operation of the business enterprise on:
(i) A regular full-time basis; or
(ii) A part-time basis if the person is customarily performing such duties at least twenty (20) hours per week for at least six (6) months during the taxable year.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-505
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.
Issuing source page ↗
Authority boundary: historical statutory source snapshot not current law.
Open the recorded source website ↗
Record provenance
Stable record: arkansas_code:legal_authorities:26-51-505
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 04ef5758fbdf42ede2e7fc2414caa49005b68735462853ff386a2390ca1daf6d
Source location: content.xml paragraph 13535
Stored source content
26-51-505. Establishment or expansion of manufacturing enterprise — Definitions.
(a) There shall be allowed a credit against the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., § 26-51-205, and § 26-51-303, an amount as determined in subsection (c) of this section, for any taxpayer who establishes or expands a manufacturing enterprise in the State of Arkansas which results in the creation of new additional full-time or part-time jobs within this state.
(b)(1) As used in this section, “manufacturing” refers to and includes those operations commonly understood within their ordinary meaning and shall also include mining, quarrying, refining, extracting oil and gas, cotton ginning, the drying of rice, soybeans, and other grains, the manufacturing of feed, processing of poultry or eggs and livestock, and the hatching of poultry.
(2)(A) A “new employee” shall be a person residing and domiciled in this state, hired by the taxpayer to fill a new additional job in this state which previously did not exist in the manufacturing enterprise during the taxable year for which the credit allowed by this section is claimed.
(B) To qualify for the credit provided in this section, the employment of a new employee by the manufacturer must increase the total number of employees who are employed by the manufacturer. In no case shall the new employees allowed for the purpose of the credit exceed the total increase in employment.
(C) A person shall be deemed to be so engaged if that person performs duties in connection with the operation of the business enterprise on:
(i) A regular full-time basis; or
(ii) A part-time basis if the person is customarily performing such duties at least twenty (20) hours per week for at least six (6) months during the taxable year.
(c)(1) The credit shall be a portion of the state individual or corporate income tax paid by the taxpayer but not in excess of fifty percent (50%) of the tax. The portion shall be an amount determined by multiplying the number of new employees, as defined in subdivision (b)(2) of this section, by one hundred dollars ($100) per eligible new employee per taxable year.
(2) The amount of the credit allowed under subdivision (c)(1) of this section for the taxable year shall be an amount equal to the sum of:
(A) A carryover of prior unused credits arising from the taxable years beginning on or after January 1, 1983, carried to the taxable year; plus
(B) The amount of the credit allowed by subdivision (c)(1) of this section for the taxable year.
(3) If the sum of the amount of the credits under subdivisions (c)(2)(A) and (B) of this section for the taxable year exceeds the limitation imposed by subdivision (c)(1) of this section, the excess shall be treated as a carryover credit and may be carried over for a maximum of three (3) consecutive years following the taxable year in which the credit originated.
(d)(1) In the case of a proprietorship or partnership, the amount of the credit determined under this section for any taxable year shall be apportioned to each proprietor or partner in proportion to the amount of income from the manufacturing entity which the proprietor or partner is required to include in his or her gross income.
(2) In the case of a Subchapter S corporation, as allowed by § 26-51-409, the amount of the credit determined under this section for any taxable year shall be apportioned pro rata among the persons who are shareholders of the corporation on the last day of the taxable year.
(3) No credit shall be allowed under this section to any organization which is exempt from state income tax.
(4) In the case of an estate or trust:
(A) The amount of the credit determined under this section for any taxable year shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each; and
(B) Any beneficiary to whom any amount has been apportioned under subdivision (d)(4)(A) of this section shall be allowed, subject to the limitations contained in this section, a credit under this section for the amount.
(e)(1) The Revenue Division of the Department of Finance and Administration shall promulgate such rules as may be deemed necessary to carry out the purposes of this section.
(2) The Revenue Division of the Department of Finance and Administration shall consult with the Division of Workforce Services and the Arkansas Economic Development Council during the promulgation of the rules.
(f) The tax credit provided by this section shall expire on June 30, 1988. Any unused credits may be carried over beyond this date in accordance with subdivision (c)(3) of this section.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-101. Title.
This act shall be known and may be cited as the “Income Tax Act of 1929”.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-101
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 26-51-101. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-205. Corporations — Work Force 2000 Development Fund. [Effective until January 1, 2021.]
(a) Every corporation organized under the laws of this state shall pay annually an income tax with respect to carrying on or doing business on the entire net income of the corporation, as now defined by the laws of the State of Arkansas, received by such corporation during the income year, on the following basis:
(1) On the first $3,000 of net income or any part thereof 1%
On the second $3,000 of net income or any part thereof 2%
On the next $5,000 of net income or any part thereof 3%
On the next $14,000 of net income or any part thereof 5%
On the next $75,000 of net income or any part thereof, but not exceeding $100,000 6%
(2) On net income exceeding one hundred thousand dollars ($100,000), a flat rate of six and one-half percent (6½%) shall be applied to the entire net income.
(b) Every foreign corporation doing business within the jurisdiction of this state shall pay annually an income tax on the proportion of its entire net income as now determined by the income tax laws of Arkansas, on the following basis:
(1) On the first $3,000 of net income or any part thereof 1%
On the second $3,000 of net income or any part thereof 2%
On the next $5,000 of net income or any part thereof 3%
On the next $14,000 of net income or any part thereof 5%
On the next $75,000 of net income or any part thereof, but not exceeding $100,000 6%
(2) On net income exceeding one hundred thousand dollars ($100,000), a flat rate of six and one-half percent (6½%) shall be applied to the entire net income.
(c)(1)(A) There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-205
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 26-51-205. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-205. Corporations — Work Force 2000 Development Fund. [Effective January 1, 2021.]
(a)(1) Every corporation organized under the laws of this state shall pay annually an income tax with respect to carrying on or doing business on the entire net income of the corporation, as now defined by the laws of the State of Arkansas, received by the corporation during the income year, on the following basis:
(A) On the first three thousand dollars ($3,000) of net income or any part thereof, one percent (1%);
(B) On the second three thousand dollars ($3,000) of net income or any part thereof, two percent (2%);
(C) On the next five thousand dollars ($5,000) of net income or any part thereof, three percent (3%);
(D) On the next fourteen thousand dollars ($14,000) of net income or any part thereof, five percent (5%);
(E) On the next seventy-five thousand dollars ($75,000) of net income or any part thereof, but not exceeding one hundred thousand dollars ($100,000), six percent (6%); and
(F) On net income exceeding one hundred thousand dollars ($100,000), six and five-tenths percent (6.5%).
(2) For the tax year beginning January 1, 2021, every corporation organized under the laws of this state shall pay annually an income tax with respect to carrying on or doing business on the entire net income of the corporation, as now defined by the laws of this state, received by the corporation during the income year, on the following basis:
(A) On the first three thousand dollars ($3,000) of net income or any part thereof, one percent (1%);
(B) On the next three thousand dollars ($3,000) of net income or any part thereof, two percent (2%);
(C) On the next five thousand dollars ($5,000) of net income or any part thereof, three percent (3%);
(D) On the next fourteen tho
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-205
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 26-51-205. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-303. Exempt organizations.
(a) The following organizations shall be exempt from taxation under the Income Tax Act of 1929, § 26-51-101 et seq.:
(1) Fraternal benefit societies, orders, or associations:
(A) Operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system; and
(B) Providing for the payment of life, sickness, accident, or other benefits to the members of such society, order, or association or their dependents;
(2) Domestic life and disability insurance companies and foreign insurance companies;
(3) Cemetery corporations;
(4) Business leagues, chambers of commerce, or boards of trade not organized for profit and no part of the net earnings of which inures to the benefit of any private stockholders or individuals;
(5) Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare;
(6) Farmers' or other mutual hail, cyclone, or fire insurance companies, or other domestic insurance companies writing lines of insurance other than those specified in subdivisions (a)(1) and (2) of this section, mutual ditch or irrigation companies, mutual or cooperative telephone companies, or like organizations of a purely local character, but only if eighty-five percent (85%) or more of the income of the organization consists solely of assessments, dues, and fees collected from members for the sole purpose of meeting losses and expenses;
(7) Farmers', fruit growers', or like organizations organized and operated as sales agent for the purpose of marketing the products of members and turning back to them the proceeds of sales, less the necessary selling expenses, on the basis of the quantity of produce furnished by them;
(8) Labor,
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-303
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 26-51-303. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-409. Federal Subchapter S adopted.
(a) Subchapter S of the Internal Revenue Code, 26 U.S.C. § 1361 et seq., as in effect on January 1, 2019, regarding small business corporations, is adopted for the purpose of computing Arkansas income tax liability.
(b)(1)(A) A corporation shall be treated as a Subchapter S corporation for Arkansas income tax purposes if the corporation has elected Subchapter S treatment for federal income tax purposes for the same tax year.
(B) An election made under Subchapter S of the Internal Revenue Code, 26 U.S.C. § 1361 et seq., for federal income tax purposes is deemed to have been made for Arkansas income tax purposes.
(2) A corporation that has elected to be treated as a Subchapter S corporation for federal income tax purposes shall not elect to be treated as a Subchapter C corporation for Arkansas income tax purposes.
(3) When filing an Arkansas Subchapter S income tax return, a corporation shall attach to its Arkansas Subchapter S income tax return a complete copy of the corporation's federal Subchapter S income tax return filed with the Internal Revenue Service for that taxable year.
(c)(1) However, all nonresident shareholders of Subchapter S corporations receiving a prorated share of income, loss, deduction, or credit pursuant to the provisions of this section must file a properly executed state income tax return with the Secretary of the Department of Finance and Administration and remit the applicable state income tax due.
(2) Failure to so report and remit on the part of any nonresident shareholder shall be grounds upon which the secretary may revoke the corporation's Subchapter S election and collect the tax from the corporation by any manner authorized by the Income Tax Act of 1929, § 26-51-101 et seq.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-409
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 26-51-409. This identifies an authority to review, not proof of applicability.