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26-51-507. Employer-provided child care — As qualified under former § 26-52-401 — Definition.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-507. Employer-provided child care — As qualified under former § 26-52-401 — Definition.
(a) A business which qualifies for the exemption from the gross receipts tax under former § 26-52-401(29) shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of employees employed exclusively in providing childcare services.
(b) If two (2) or more businesses participate in a childcare program for their employees as provided by former § 26-52-401(29), then each business will be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of only those employees who are on the respective business' payroll and are employed exclusively for providing childcare services.
(c)(1) To qualify for the income tax credit, the revenue to the business or businesses from the childcare facility cannot exceed the direct operating costs of the facility. If, on an annual basis, the childcare facility receives revenue which exceeds the direct operating costs of the facility, the business or businesses will not be entitled to the income tax credit.
(2) As used in this section, “direct operating costs” means:
(A) The cost of food and beverages provided to the children;
(B) The cost of labor for personnel whose services are performed exclusively on the premises of the childcare facility for the care of the children and all related employment taxes paid by the employer; and
(C) All materials and supplies necessary to operate the childcare facility.
(d) The income tax credit created by subsection (a) of this section shall first be available in the taxable year following the year the business makes payment of wages to childcare workers. To the extent that the credit is not fully utilized in this first year, it may
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-507
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:26-51-507
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: e0948d10855e4ce211e59c71ed9cc96ba8f8993871e3b486d843c355d068facc
Source location: content.xml paragraph 13733
Stored source content
26-51-507. Employer-provided child care — As qualified under former § 26-52-401 — Definition.
(a) A business which qualifies for the exemption from the gross receipts tax under former § 26-52-401(29) shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of employees employed exclusively in providing childcare services.
(b) If two (2) or more businesses participate in a childcare program for their employees as provided by former § 26-52-401(29), then each business will be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of only those employees who are on the respective business' payroll and are employed exclusively for providing childcare services.
(c)(1) To qualify for the income tax credit, the revenue to the business or businesses from the childcare facility cannot exceed the direct operating costs of the facility. If, on an annual basis, the childcare facility receives revenue which exceeds the direct operating costs of the facility, the business or businesses will not be entitled to the income tax credit.
(2) As used in this section, “direct operating costs” means:
(A) The cost of food and beverages provided to the children;
(B) The cost of labor for personnel whose services are performed exclusively on the premises of the childcare facility for the care of the children and all related employment taxes paid by the employer; and
(C) All materials and supplies necessary to operate the childcare facility.
(d) The income tax credit created by subsection (a) of this section shall first be available in the taxable year following the year the business makes payment of wages to childcare workers. To the extent that the credit is not fully utilized in this first year, it may be carried forward for an additional two (2) years. Any credit remaining thereafter shall expire.
(e) The income tax provisions of this section shall be in full force and effect for all income tax years beginning on and after January 1, 1993.
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-52-401. Various products and services — Definitions.
There is specifically exempted from the tax imposed by this chapter the following:
(1) The gross receipts or gross proceeds derived from the sale of tangible personal property, specified digital products, a digital code, or services by churches, except when the organizations may be engaged in business for profit;
(2) The gross receipts or gross proceeds derived from the sale of tangible personal property, specified digital products, a digital code, or service by charitable organizations, except when the organizations may be engaged in business for profit;
(3) Gross receipts or gross proceeds derived from the sale of food, food ingredients, or prepared food in public, common, high school, or college cafeterias and lunch rooms operated primarily for teachers and pupils, not operated primarily for the public and not operated for profit;
(4) Gross receipts or gross proceeds derived from the sale of newspapers;
(5) Gross receipts or gross proceeds derived from sales to the United States Government;
(6) Gross receipts or gross proceeds derived from the sale of motor vehicles and adaptive equipment to disabled veterans who have purchased the motor vehicles or adaptive equipment with the financial assistance of the United States Department of Veterans Affairs as provided under 38 U.S.C. §§ 3902 — 3903;
(7) Gross receipts or gross proceeds derived from the sale of specified digital products, a digital code, tangible personal property, including without limitation office supplies; office equipment; program items at camp such as bows, arrows, and rope; rifles for rifle range and other rifle items; food, food ingredients, or prepared food for camp; lumber and supplies used in camp maintenance; camp equipment; f
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-52-401
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 26-52-401. This identifies an authority to review, not proof of applicability.