Arkansas Administrative Code

15 CAR § 146-106. Issuance of tax credit. (a) Upon receipt of the qualified investment, whether through the sale of an equity interest, or the issuance of a convertible debt instrument by the company in exchange for an infusion of cash from the investor, the qualified business sh…

15 CAR § 146-107. Sale or transfer of credit. (a)(1) The income tax credits earned under this program may be sold upon approval by the Arkansas Economic Development Commission. (2) Any sale of tax credits through this program must be fully documented by the commission, and that i…

15 CAR § 146-108. Sale or disposition of equity interest. (a) For the purpose of ascertaining the gain or loss from the sale or other disposition of an equity interest in a business, the owner of the equity interest shall reduce his or her basis in the equity interest by the amou…

15 CAR § 146-109. Limitations. (a) The total cumulative amount of tax credits available to all purchasers of equity interest in qualified businesses under this part and under Arkansas Code § 15-4-3305(f) in any calendar year shall not exceed six million two hundred fifty thousand…

15 CAR § 146-110. Coordination with the Arkansas Capital Development Company Act [repealed]. (a) All agreements and commitments of the capital development company related to the purchase of equity interests in existence before July 1, 2007, and certified to the Arkansas Economic …

15 CAR § 147-101. Definitions. As used in this part: (1) “AEDC” means the Arkansas Economic Development Commission; (2) “Applied research” means any activity which seeks to utilize, synthesize, or apply existing knowledge, information, or resources to the resolution of a specific…

15 CAR § 147-201. Introduction. The following programs, established in accordance with the authority granted above, are governed by this part.

15 CAR § 147-202. Seed Capital Investment Program (SCIP). (a) Purpose. (1) The purpose of the Seed Capital Investment Program (SCIP) is to foster the formation and development of innovative, technology-based enterprises that will: (A) Stimulate the economy of Arkansas by creating…

15 CAR § 147-203. Technology Development Program (TDP). (a) Purpose. (1) The purpose of the Technology Development Program (TDP) is to assist in commercializing new, technology-based products and processes created or developed by inventors, businesses, Arkansas-based colleges or …

15 CAR § 147-204. Technology Transfer Assistance Grant Program (TTAG). (a) Purpose. (1) The purpose of the Technology Transfer Assistance Grant (TTAG) Program is to increase Arkansas industry’s competitiveness through technical and operational advancements by providing funds for …

15 CAR § 147-205. Basic Research and Applied Research Grant Programs. (a) Purpose. (1) Basic Research Grant Program. (A) The Basic Research Grant Program provides matching grant funds to: (i) Help promote and support the growth and development of scientists working in Arkansas; a…

15 CAR § 147-206. Business Incubator Program. (a) Purpose. (1)(A) The purpose of the Business Incubator Program is to enhance economic development by stimulating technological innovation and fostering the growth of technology-based enterprises to create new employment opportuniti…

15 CAR § 147-207. Centers for Applied Technology Program. (a) Purpose. (1) The purpose of the Centers for Applied Technology (CAT) Program is to encourage greater collaboration between private enterprises and Arkansas-based colleges and universities in the development and applica…

15 CAR § 147-208. Contact information. For more information regarding funding programs of the Division of Science and Technology of the Arkansas Economic Development Commission, please contact: Arkansas Economic Development Commission Division of Science and Technology 1 Commerce…

15 CAR § 147-301. External expert or experts. (a) The Executive Director of the Arkansas Economic Development Commission may request that an external expert or external experts, bound by a nondisclosure agreement to protect the applicant from unfair competition, review applicatio…

15 CAR § 147-302. Confidential information. (a) Applications and attachments submitted to the Division of Science and Technology of the Arkansas Economic Development Commission are subject to the Freedom of Information Act of 1967, Arkansas Code § 25-19-101 et seq. (b) To the ext…

15 CAR § 147-303. Program funding. (a) In establishing and maintaining the programs governed by this part, the Executive Director of the Arkansas Economic Development Commission may use such moneys as are lawfully available to the executive director for supporting the purposes of…

15 CAR § 147-304. Conflict of interest. (a) No director, officer, or employee of the Arkansas Economic Development Commission, for purpose of personal gain, shall have or attempt to have, directly or indirectly, any interest in any contract or agreement of the commission in conne…

15 CAR § 148-101. Introduction. (a) The Bond Guaranty Program was created to provide long-term, tax-exempt, and taxable financing for businesses expanding or locating in Arkansas. (b) Although the city or county may issue the revenue bond, the company is still responsible for pay…

15 CAR § 148-102. Definitions. As used in this part: (1)(A) “Act No. 9 bonds” means revenue bonds issued in accordance with the provisions of the Municipalities and Counties Industrial Development Revenue Bond Law, Arkansas Code § 14-164-201 et seq., to benefit private companies.…

15 CAR § 148-103. Eligibility criteria to qualify for the program. (a) To qualify for a tax-exempt industrial revenue bond (IRB), a company must meet the following eligibility criteria: (1) The firm must be engaged in manufacturing, processing, or other activities directly suppor…

15 CAR § 148-104. Administration of benefits. (a) Eligible activities. (1)(A) As a general rule, bond proceeds can be used to purchase or construct fixed assets including: (i) Land; (ii) Buildings; and (iii) Equipment. (B) Certain limitations, as governed by the Internal Revenue …

15 CAR § 148-105. Application process. (a)(1) The application for the Bond Guaranty Program must be filed with the Arkansas Economic Development Commission a minimum of thirty (30) days prior to the next meeting of the Arkansas Economic Development Council, which is regularly hel…

15 CAR § 150-101. Introduction. (a) Overview. (1) The New Markets Jobs Act of 2013, Acts 2013, No. 1474, Arkansas Code § 15-4-3601 et seq., creates a state new market tax credit program to be administered by the Arkansas Economic Development Commission. (2) New market tax credits…

15 CAR § 150-102. Definitions. As used in this part: (1) “Applicable percentage” means: (A) Zero percent (0%) for the first two (2) credit allowance dates; (B) Twelve percent (12%) for the third, fourth, and fifth credit allowance dates; and (C) Eleven percent (11%) for the sixth…

15 CAR § 150-103. Eligibility for tax credit. New market tax credits against state premium tax liabilities under Arkansas Code §§ 23-63-102 and 26-57-601 – 26-57-605, excluding any liability for taxes on health insurance premiums, are earned by entities making qualified equity in…

15 CAR § 150-104. Application for tax credit. (a) QCDEs seeking to have equity investments or long-term debt securities designated as qualified equity investments eligible for new market tax credits shall submit a completed Arkansas Economic Development Commission-approved applic…

15 CAR § 150-105. Arkansas Economic Development Commission application review and certification of qualified equity investments. (a) The Arkansas Economic Development Commission shall begin accepting applications on July 15, 2013. (b) The application process: (1) A QCDE submits a…

15 CAR § 150-106. Investments in qualified community development entities. (a) Within thirty (30) days of receiving the Arkansas Economic Development Commission notice of certification, the QCDE or any transferee shall issue the qualified equity investment and receive cash in the…

15 CAR § 150-107. Investments in qualified active low-income community businesses. (a) QCDEs must invest in corporations, limited liability companies, associations, partnerships, or other business entities meeting the definition of “qualified active low-income community business”…

15 CAR § 150-108. Use of tax credit. New market tax credits may be used as follows: (1) On each credit allowance date, the holder of the qualified equity investment may use a portion of the tax credit during the taxable year that includes the credit allowance date; (2) The tax cr…

15 CAR § 150-109. Letter rulings. (a)(1) Applicants may request letter rulings from the Arkansas Economic Development Commission regarding new market tax credits. (2) Letter rulings bind all state agencies, including the commission, its agents, and successors, until the QCDE or i…

15 CAR § 150-110. Recapture of tax credits. (a) The Arkansas Economic Development Commission shall recapture the tax credit allowed under the New Markets Jobs Act of 2013, Arkansas Code § 15-4-3601 et seq., from the taxpayer that claimed the tax credit if: (1)(A) Any amount of a …

15 CAR § 150-111. Refundable performance fees. (a)(1) QCDEs applying for certification of equity investments or long-term debt securities shall submit to the Arkansas Economic Development Commission a refundable performance fee in the amount of five-tenths of one percent (0.5%) o…

15 CAR § 150-112. Retaliatory tax. An entity claiming a new market tax credit under the New Markets Jobs Act of 2013, Arkansas Code § 15-4-3601 et seq., is not required to pay any additional retaliatory tax levied under Arkansas Code § 23-63-102 nor any additional tax that may ar…

15 CAR § 150-113. Decertification. (a)(1) Qualified equity investments certified under Arkansas Code § 15-4-3605 shall not be decertified unless the requirements of Arkansas Code § 15-4-3611(b) are met. (2) Until all qualified equity investments issued by a QCDE are decertified u…

15 CAR § 150-114. Reports. (a)(1) A QCDE that issues a qualified equity investment under the New Markets Jobs Act of 2013, Arkansas Code § 15-4-3601 et seq., shall submit an initial report to the Arkansas Economic Development Commission within five (5) business days after the fir…

15 CAR § 150-115. Revenue impact assessment. (a)(1) Prior to making a qualified low-income community investment, or reinvestment whenever initial job creation and retention projections were not met, a QCDE shall submit to the Arkansas Economic Development Commission for review an…

15 CAR § 150-116. New Market Performance Guarantee Fund. (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 miscellaneous fund to be known as the “New Markets Performance Guarantee Fund” consisting of: (1…

15 CAR § 151-101. Introduction — Overview. (a) Acts 2013, No. 1404, as amended and codified in Arkansas Code §§ 26-52-447, 26-53-149, and 15-4-3501, establishes two (2) options by which certain state sales and use taxes relating to the partial replacement and repair of machinery …

15 CAR § 151-102. Definitions. As used in this part: (1) “Certain machinery and equipment” means items taxable under Arkansas Code §§ 26-52-301 and 26-52-302 on the sale of, and Arkansas Code §§ 26-53-106 and 26-53-107 on the privilege of storing, using, distributing, or consumin…

15 CAR § 151-103. Application and approval process for discretionary 5.875% state sales and use tax refund. (a) Prerequisite. Taxpayers shall hold a direct pay or a limited direct pay sales and use tax permit from the Department of Finance and Administration prior to filing an ap…

15 CAR § 151-104. Combinability of expenditures. An expenditure shall not qualify for both the increased refund for major maintenance and improvement projects and the retention tax credit provided for in Arkansas Code § 15-4-2706(c).

15 CAR § 180-101. Introduction. (a) In order to facilitate the construction of specific capital improvement projects, the Arkansas Public Roads Improvements Credit Act, Acts 1999, No. 1347, was passed by the 82nd General Assembly of the State of Arkansas. (b) The Arkansas Economi…

15 CAR § 180-102. Definitions. As used in this part: (1) “Capital improvements” means capital improvements for public roads; (2) “Commission” means the Arkansas Economic Development Commission; (3) “Contribution” means a contribution in aid of construction of a public road projec…

15 CAR § 180-103. To contribute to the Public Roads Incentive Fund. (a) Contributions. Eligible contributors include any taxpayer subject to Arkansas state income tax that contributes to the Public Roads Incentive Fund of the Arkansas Economic Development Commission. (b) The Publ…

15 CAR § 180-104. To apply for public roads funding assistance. (a) Applicants. (1) Governing authorities may apply to the Director of the Arkansas Economic Development Commission for funding assistance for capital improvement projects for public roads as provided by the Arkansas…

15 CAR § 180-105. Powers and duties of the Arkansas Economic Development Commission. (a)(1) The Director of the Arkansas Economic Development Commission will determine whether or not: (A) The project is in the public interest; and (B) There are sufficient dedicated project funds,…

15 CAR § 180-106. Administration of benefits. (a) Eligible taxpayers will be entitled to a state income tax credit that may be applied in any tax year after January 1, 1999. (b) The credit shall be determined in the following manner: (1) The credit is limited to an amount not to …

15 CAR § 181-101. Introduction — Overview. (a) Pursuant to authority granted by Arkansas Code § 15-4-209, the Arkansas Economic Development Commission shall administer the Community Assistance Grant Program (CAGP). (b)(1) The objective of the CAGP is to foster the commission’s mi…