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26-51-508. Employer-provided child care — As qualified under § 26-52-516 or § 26-53-132 — Definition.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-508. Employer-provided child care — As qualified under § 26-52-516 or § 26-53-132 — Definition.
(a) A business which qualifies for the refund of the gross receipts tax or compensating use tax under § 26-52-516 or § 26-53-132 shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of its employees employed exclusively in providing childcare service, or a five-thousand-dollar income tax credit for the first tax year the business provides its employees with a childcare facility.
(b) If two (2) or more businesses participate in a childcare program for their employees as provided by § 26-52-516 or § 26-53-132, 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. The first year's five-thousand-dollar credit will be prorated among the businesses based upon the percentage of the cost paid by each business for the initial construction and equipping of the childcare facility.
(c)(1)(A) 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.
(B) If, on an annual basis, the business receives revenues from the operation of the childcare facility which exceed the direct operating costs of the facility, the businesses will not be entitled to the income tax credit.
(2) As used in this subsection, “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
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-508
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:26-51-508
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: e14895f168f00ae93c70d21824bf2d1a16275f3f92f351afc427223eb50dad7c
Source location: content.xml paragraph 13749
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26-51-508. Employer-provided child care — As qualified under § 26-52-516 or § 26-53-132 — Definition.
(a) A business which qualifies for the refund of the gross receipts tax or compensating use tax under § 26-52-516 or § 26-53-132 shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of its employees employed exclusively in providing childcare service, or a five-thousand-dollar income tax credit for the first tax year the business provides its employees with a childcare facility.
(b) If two (2) or more businesses participate in a childcare program for their employees as provided by § 26-52-516 or § 26-53-132, 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. The first year's five-thousand-dollar credit will be prorated among the businesses based upon the percentage of the cost paid by each business for the initial construction and equipping of the childcare facility.
(c)(1)(A) 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.
(B) If, on an annual basis, the business receives revenues from the operation of the childcare facility which exceed the direct operating costs of the facility, the businesses will not be entitled to the income tax credit.
(2) As used in this subsection, “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.
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-52-516. Refunds for construction of employer-operated childcare facilities — Definition.
(a) A business which operates, or contracts for the operation of, a childcare facility for the primary purpose of providing childcare services to its employees may obtain a refund of the gross receipts tax paid on the purchase of construction materials and furnishings used in the initial construction and equipping of the childcare facility after the facility is licensed pursuant to the Childcare Facility Licensing Act, § 20-78-201 et seq., and is certified as having an appropriate early childhood program pursuant to § 6-45-109.
(b)(1) As used in this section, “childcare facility” means a childcare facility licensed under the Childcare Facility Licensing Act, § 20-78-201 et seq. To qualify as a childcare facility, the childcare facility shall provide an appropriate early childhood program as defined in § 6-45-103.
(2) A childcare facility may be operated for the use of one (1) or more employers.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-52-516
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 26-52-516. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-53-132. Refund for construction of childcare facility — Definition.
(a) A business which operates, or contracts for the operation of, a childcare facility for the primary purpose of providing childcare services to its employees may obtain a refund of the compensating use tax paid on the purchase of construction materials and furnishings used in the initial construction and equipping of the childcare facility after the facility is licensed pursuant to the Childcare Facility Licensing Act, § 20-78-201 et seq.
(b)(1) As used in this section, “childcare facility” means a childcare facility licensed under the Childcare Facility Licensing Act, § 20-78-201 et seq. To qualify as a childcare facility, the child care shall provide an appropriate early childhood program as defined in § 6-45-103.
(2) A childcare facility may be operated for the use of one (1) or more employers.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-53-132
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 26-53-132. This identifies an authority to review, not proof of applicability.