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26-58-208. Amounts of credits or tax — Maximum annual credits allowed.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-58-208. Amounts of credits or tax — Maximum annual credits allowed.
(a) A producer is entitled to an annual severance tax credit that is calculated based upon the cost, as defined in § 26-58-209, of the producer in maintaining an approved underground saltwater disposal system during the calendar year for which the severance tax credit is approved.
(b)(1) The total severance tax credits allowed all oil producers for any calendar year shall not exceed three hundred seventy thousand dollars ($370,000).
(2) If for any calendar year the total severance tax credits of all oil producers operating, utilizing, or maintaining approved underground saltwater disposal systems exceed the total maximum allowable severance tax credits provided in subdivision (b)(1) of this section, the Secretary of the Department of Finance and Administration shall prorate the allowable severance tax credits among the respective oil producers in the proportion that the severance tax credits due each oil producer bear to the total of all severance tax credits due all qualifying oil producers.
(c)(1) The total severance tax credits allowed all natural gas producers for any calendar year shall not exceed three hundred seventy thousand dollars ($370,000).
(2) If for any calendar year the total severance tax credits of all natural gas producers operating, utilizing, or maintaining approved underground saltwater disposal systems exceed the total maximum allowable severance tax credits provided in subdivision (c)(1) of this section, the secretary shall prorate the allowable severance tax credits among the respective natural gas producers in the proportion that the severance tax credits due each natural gas producer bear to the total of all severance tax credits due all qualifying natural gas prod
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-58-208
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:26-58-208
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 76db0c9aa079279038c54408582e8e008698b25941d00de41e381b78f47e01b8
Source location: content.xml paragraph 30072
Stored source content
26-58-208. Amounts of credits or tax — Maximum annual credits allowed.
(a) A producer is entitled to an annual severance tax credit that is calculated based upon the cost, as defined in § 26-58-209, of the producer in maintaining an approved underground saltwater disposal system during the calendar year for which the severance tax credit is approved.
(b)(1) The total severance tax credits allowed all oil producers for any calendar year shall not exceed three hundred seventy thousand dollars ($370,000).
(2) If for any calendar year the total severance tax credits of all oil producers operating, utilizing, or maintaining approved underground saltwater disposal systems exceed the total maximum allowable severance tax credits provided in subdivision (b)(1) of this section, the Secretary of the Department of Finance and Administration shall prorate the allowable severance tax credits among the respective oil producers in the proportion that the severance tax credits due each oil producer bear to the total of all severance tax credits due all qualifying oil producers.
(c)(1) The total severance tax credits allowed all natural gas producers for any calendar year shall not exceed three hundred seventy thousand dollars ($370,000).
(2) If for any calendar year the total severance tax credits of all natural gas producers operating, utilizing, or maintaining approved underground saltwater disposal systems exceed the total maximum allowable severance tax credits provided in subdivision (c)(1) of this section, the secretary shall prorate the allowable severance tax credits among the respective natural gas producers in the proportion that the severance tax credits due each natural gas producer bear to the total of all severance tax credits due all qualifying natural gas producers.
(d)(1) A claim for a severance tax credit shall be filed with the secretary on forms prescribed by the secretary on or before April 1 of the calendar year following the calendar year in which the costs of maintaining the underground saltwater disposal system were incurred.
(2) A severance tax credit is not allowed for any claim filed after April 1 of the calendar year following the calendar year in which the costs were incurred.
(e) The amount of the severance tax credit shall be paid to each qualifying and approved producer no later than June 1 of the calendar year following the calendar year in which the costs were incurred.
(f) Interest shall not accrue or be paid on a severance tax credit allowed under this subchapter.
(g) The secretary may promulgate rules to administer this section.
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-58-209. Cost of maintaining saltwater disposal system.
The cost of a producer in maintaining an approved underground saltwater disposal system for the purposes of this subchapter shall include the following:
(1) An allowance, to be spread equally over each severance tax reporting period, for depreciation of the actual cash investment of the producer in the constructing, equipping, and improving of an approved underground saltwater disposal system, which depreciation period shall not be less than five (5) years nor more than ten (10) years as may be approved by the Secretary of the Department of Finance and Administration;
(2) The actual cash outlay of the producer in purchasing stock in a business or corporation organized exclusively for the purpose of constructing and operating an approved underground saltwater disposal system; and
(3)(A) The actual expenses of the producer in operating and maintaining an approved underground saltwater disposal system.
(B) These expenses shall include the cost of labor, supplies, materials, utilities, and other necessary operating expenses.
(C) For a producer who purchases the services of an approved underground saltwater disposal business or corporation for disposing of salt water produced in the production of oil or natural gas by the producer, the actual cost of the service is deemed to be the cost of the producer within the meaning of this section.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-58-209
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 26-58-209. This identifies an authority to review, not proof of applicability.