Arkansas Administrative Code

26 CAR § 63-103. Withholding rate. (a) Corporations, partnerships, and LLCs. (1) In the case of S corporations, general, limited, or limited liability partnerships, and limited liability companies, withholding at the highest income tax rate levied under Arkansas Code §§ 26-51-201…

26 CAR § 63-104. Members not subject to withholding. The following persons and organizations are not subject to withholding by a pass-through entity: (1) Nonresident members whose income has been determined by the Department of Finance and Administration not to be subject to with…

26 CAR § 63-105. Withholding not required. Withholding by a pass-through entity is not required in the following instances: (1) When an entity is not required to file a federal income tax return or properly elects out of such duty; (2) When a pass-through entity is making distrib…

26 CAR § 63-106. Required reports and due dates. (a)(1) A pass-through entity is required to provide the Department of Finance and Administration with an annual return (Form AR941PT) that includes magnetic media (a CD or three-and-one-half-inch diskette) showing to whom the distr…

26 CAR § 63-107. Extensions of time to file reports. Any request for an extension beyond April 15 must be made in writing prior to April 15.

26 CAR § 63-108. Credit or refund. (a) Any nonresident member from whom Arkansas income tax is withheld pursuant to the provisions of this part and who files an Arkansas income tax return is entitled to a credit for the amount of Arkansas income tax withheld. (b) If the amount wi…

26 CAR § 63-109. Registration. (a) Pass-through entities that make distributions subject to Arkansas withholding must register with the Department of Finance and Administration using Form AR4ER. (b) Important. (1) When completing the AR4ER, check the "Pass Through Entity" box and…

26 CAR § 63-110. Affidavit filing procedures. (a) Nonresident members who elect to file an affidavit (Form AR4PT) agreeing to be subject to the personal jurisdiction of the Department of Finance and Administration and the courts of Arkansas for the purpose of determining and coll…

26 CAR § 63-111. Deductions, adjustments, and credits. (a) The Arkansas income tax due on a composite return (Form AR1000CR) shall not be reduced by a pass-through entity nonresident member's allowable Arkansas business incentive income tax credits nor any other deductions, adjus…

26 CAR § 64-101. General provisions. (a)(1) Acts 1985, No. 759, grants a credit against a taxpayer's Arkansas corporate income tax or Arkansas individual income tax for donations by a taxpayer of new machinery or equipment and for sales below cost of machinery and equipment by ta…

26 CAR § 64-102. Limits on credit. (a) In the case of donations or sales below cost, the credit shall be claimed in the tax year of the donation or sale below cost, but all or any part of the unused credit may be carried over to and claimed in succeeding tax years until the credi…

26 CAR § 64-103. Examples of application. (a) The following examples illustrate the application of Acts 1985, No. 759. (b) Each example assumes that the taxpayer, the donation, sale, or expenditure, and the institution receiving the donation, sale, or payment are qualified under …

26 CAR § 65-101. Definitions. For the purpose of this part, the following definitions shall apply: (1) “Recycling” means the systematic collection, sorting, decontaminating, and returning of waste materials to commerce as commodities for use or exchange; (2) “Taxable year” means …

26 CAR § 65-102. Allowance of credit. (a) An income tax credit shall be allowed for any taxpayer engaged in the business of reducing, reusing, or recycling solid waste material for commercial purposes who purchases waste reduction, reuse, or recycling equipment for the purpose of…

26 CAR § 65-103. Certification. (a) Before a claim for income tax credit may be submitted to the Department of Finance and Administration, a certification must be obtained from the Director of the Division of Environmental Quality. (b) The certification statement must include: (1…

26 CAR § 65-104. Amount of credit. (a)(1) The amount of the credit allowed shall be equal to thirty percent (30%) of the cost of waste reduction, reuse, or recycling equipment including the cost of installation. (2) Costs not eligible for the credit include: (A) Feasibility studi…

26 CAR § 65-105. Claim of credit. (a) Upon allowance of a credit the taxpayer will be issued a credit certificate by the Tax Credits and Special Refunds Section of the Revenue Division of the Department of Finance and Administration. (b)(1) The credit certificate is to be attache…

26 CAR § 65-106. Distribution of credit. If the entity seeking the tax credit is: (1) A proprietorship or partnership, the amount of the credit determined for any taxable year shall be apportioned to each proprietor or partner in proportion to the amount of income from the entity…

26 CAR § 65-107. Applicability. The provisions of this part shall apply to waste reduction, reuse, or recycling equipment purchases made after January 1, 1991.

26 CAR § 66-101. Definitions. As used in this part: (1) "Gross tax liability" means a taxpayer's total income tax liability before the application of any state tax credits and prior to claiming any estimated income tax payments or individual income tax withholding payments, as sh…

26 CAR § 66-102. Registration. (a) Upon the transfer of Arkansas income tax credits pursuant to Arkansas Code § 15-5-1406 of the Venture Capital Investment Act of 2001, Arkansas Code § 15-5-1401 et seq., to the Arkansas Institutional Fund, LLC (successor to U.S. Partnership for S…

26 CAR § 66-103. Claims. (a)(1) Under Arkansas Code § 15-5-1406, the tax credit is limited to reducing a taxpayer's reported Arkansas income tax liability. (2) The allowable tax credit may not exceed a taxpayer's total reported income tax liability for any given tax year and is t…

26 CAR § 66-104. Estimated tax payments. (a) Arkansas requires that estimated tax payments be made quarterly in an amount equal to the total of the prior year's net tax liability divided by four (4) unless there is reason to believe that the current year's net tax liability will …

26 CAR § 66-105. Refunds. (a) Estimated tax payments which in total exceed net tax liabilities (which have been reduced by a tax credit) give rise to a refund. (b) If there is no gross tax liability, tax credits may not be claimed. (c)(1) If the available tax credit exceeds a tax…

26 CAR § 66-106. Transfers. (a) A tax credit may be transferred by the registered holder at the offices of the DIG upon the surrender of the Tax Credit Certificate together with duly executed instruments of transfer. (b) Upon presentation for transfer, the DIG shall record the tr…

26 CAR § 66-107. Replacements. (a) A registered holder of a Tax Credit Certificate may deliver its certificate to the DIG for the replacement of a certificate or multiple certificates that total in aggregate the same amount as the face value of the Tax Credit Certificate surrende…

26 CAR § 66-108. Voluntary cancellation at the lesser of face value or purchase price. (a) Under Arkansas Code § 15-5-1406(a), the tax credit may be used to reduce a taxpayer's Arkansas income tax liability. (b) As an alternative to offset payment of reported state income tax lia…

26 CAR § 66-109. Taxpayer reliance. (a) This document represents the manner in which the Revenue Division of the Department of Finance and Administration, the Arkansas Development Finance Authority, and the DIG will deal with the tax credits transferred by the Arkansas Developmen…

26 CAR § 67-101. Intent. It is the intent of the tuition reimbursement tax credit program that the: (1) Eligible company's arrangement with its employee requires the employee to complete the employee's financial arrangement with the school for the payment of the employee's tuitio…

26 CAR § 67-102. Definitions. As used in this part: (1) "Accredited institution of postsecondary education" means a school currently: (A) Accredited by the North Central Association of Colleges and Schools; or (B) Certified by the Division of Higher Education; (2) "Computer busin…

26 CAR § 67-103. Qualifications. (a)(1) The program allows eligible companies to claim an income tax credit equal to thirty percent (30%) of the cost of tuition, books, and fees reimbursed by a company to a full-time permanent employee of the company after the employee has satisf…

26 CAR § 67-104. Certification. (a)(1) To qualify for the benefits of this program, a company must complete Form AR1036 listing: (A) Each employee’s name for which tuition reimbursement payments were made during the tax year; (B) The total amount reimbursed for tuition, fees, and…

26 CAR § 67-105. Verification. (a) Tuition reimbursement tax credit claims, including information relating to Form AR1036, are subject to verification by the Department of Finance and Administration, including verification by audit. (b)(1) The employer is responsible for maintain…

26 CAR § 67-106. Additional information. For additional information, contact: Mailing address:Arkansas Department of Finance and AdministrationTax Credits and Special RefundsP.O. Box 8054, Room 2370Little Rock, Arkansas 72203-8054 Delivery address:Tax Credits and Special RefundsJ…

26 CAR § 68-101. Definitions. As used in this part: (1) "Act" means Acts 2017, No. 1042, as enacted by the General Assembly; (2) "Apprentice" means a worker who is at least sixteen (16) years of age and is employed: (A) To learn an apprenticeable occupation under 29 C.F.R. § 29.1…

26 CAR § 68-102. Approval into program. (a)(1) A taxpayer seeking benefits under Acts 2017, No. 1042, must apply to the Department of Finance and Administration for approval into this program. (2) Application must be made on forms prescribed and approved by the department. (b) Th…

26 CAR § 68-103. Income tax credits. (a) Certification. (1) To claim the credit authorized under this act, a taxpayer must certify to the Department of Finance and Administration that the taxpayer has satisfied all of the requirements for the credit. (2) The certification shall b…

26 CAR § 68-104. Superseding of prior rule. This part shall amend and supercede Rule 1996-1 with respect to the apprenticeship program income tax credit for tax years beginning on or after January 1, 2018.

26 CAR § 69-101. Title. This rule shall be cited as the “Arkansas Waterways Investment Tax Credit Rule”.

26 CAR § 69-102. Definitions. As used in this part: (1) “Eligible costs” means the costs of: (A) Construction of a new waterway facility; (B) Improvement of an existing waterway facility or property; (C) Capital facility rehabilitation of an existing waterway facility or property…

26 CAR § 69-103. Tax credit. An income tax credit is allowed against the Arkansas income tax due from a taxpayer for eligible costs incurred by a taxpayer to make capital improvements to a waterway facility or property related to water transportation in Arkansas.

26 CAR § 69-104. Application. (a) A taxpayer may submit an application for a Waterways Investment Income Tax Credit to: The Tax Credits and Special Refunds Section of the Department of Finance and Administration 1816 W. 7th Street, Suite 2370 Little Rock, Arkansas 72203 (b) The t…

26 CAR § 69-105. Cost-benefit analysis. (a) The Tax Credits and Special Refunds Section of the Department of Finance and Administration shall forward the application and documentation provided by the taxpayer to the Secretary of the Department of Commerce. (b) The secretary shall…

26 CAR § 69-106. Issuance of tax credit. The Tax Credits and Special Refunds Section of the Department of Finance and Administration shall issue tax credits on a first-come, first-served basis, based on the date of receipt of the application by the Tax Credits and Special Refunds…

26 CAR § 69-107. Limitations. (a) Income tax credits for eligible costs related to a waterway facility or property are allowed only if the eligible costs are incurred: (1) On or after January 1, 2024; and (2) On or before December 31, 2025. (b) The total cumulative tax credits aw…

26 CAR § 69-108. Review. (a) The Department of Finance and Administration shall review Waterways Investment Income Tax Credits to verify eligibility for the credit. (b) The department may disallow an income tax credit claimed in excess of the limitations described in 26 CAR § 69-…

26 CAR § 70-101. Income tax exemption increase for armed services members. (a) Beginning with the 2005 tax year, the income tax exemption for the service pay and allowances of enlisted personnel increased from six thousand dollars ($6,000) to nine thousand dollars ($9,000). (b) T…

26 CAR § 71-101. Introduction. (a) Acts 2007, No. 518, The Delta Geotourism Incentive Act of 2007, creates financial incentives to promote economic development in economically distressed areas of the Lower Mississippi River Delta through geotourism. (b) This incentive program pro…

26 CAR § 71-102. Definitions. As used in this part: (1)(A) "Economically distressed area" means a county-wide area in Arkansas in which the percentage of families that earn income below poverty level exceeds twenty-three percent (23%), based on year 2000 income levels as compiled…

26 CAR § 71-103. Approval into program. (a)(1) A person or entity seeking benefits under the Delta Geotourism Incentive Act of 2007, Acts 2007, No. 518, must apply to the Revenue Division of the Department of Finance and Administration. (2) Application must be made on the prescri…