(a) There are established investment tax incentives to:(1) Encourage capital investment for the long-term viability of businesses in the state; and(2) Create new jobs.
(1) Encourage capital investment for the long-term viability of businesses in the state; and
(2) Create new jobs.
(b) (1) (A) The award of incentives under this section is at the discretion of the Director of the Arkansas Economic Development Commission.(B) The director may offer a tax credit of up to ten percent (10%) under this subsection.(2) If offered, an application for an income tax credit or a sales and use tax credit under this section shall be submitted to the Arkansas Economic Development Commission.(3) Eligibility for incentives under this subsection and subsections (c)-(e) of this section is dependent upon the tier in which the project is located, as follows:(A) For tier 1 counties, the business shall invest five million dollars ($5,000,000) or more and have an annual payroll for new full-time permanent employees in excess of two million dollars ($2,000,000);(B) For tier 2 counties, the business shall invest three million seven hundred fifty thousand dollars ($3,750,000) or more and have an annual payroll for new full-time permanent employees in excess of one million five hundred thousand dollars ($1,500,000);(C) For tier 3 counties, the business shall invest three million dollars ($3,000,000) or more and have an annual payroll for new full-time permanent employees in excess of one million two hundred thousand dollars ($1,200,000); and(D) For tier 4 counties, the business shall invest two million dollars ($2,000,000) or more and have an annual payroll for new full-time permanent employees in excess of eight hundred thousand dollars ($800,000).(4) (A) An approved financial incentive agreement shall be transmitted to the qualified business and the Department of Finance and Administration.(B) Before the commission approves a financial incentive agreement under this subsection, the qualified business shall elect to receive the tax credits allowed under this subsection as:(i) Sales and use tax credits; or(ii) Income tax credits.(5) A qualified business shall reach the investment threshold within four (4) years from the date of the approved financial incentive agreement, except for lease payments authorized by subdivision (b)(6)(D) of this section or subdivision (c)(6) of this section.(6) (A) (i) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs annually at the end of each calendar year for the term of the financial incentive agreement.(ii) The department shall authorize an income tax credit or a sales and use tax credit of up to ten percent (10%) of total audited eligible project costs.(B) The amount of the income tax credit or sales and use tax credit authorized under subdivision (b)(6)(A)(ii) of this section may offset up to fifty percent (50%) of a qualified business's income tax or sales and use tax liability annually.(C) Unused tax credits under this subdivision (b)(6) may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first.(D) A qualified business that enters into a lease for a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive.(7) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs and average hourly wages annually at the end of each tax year for the term of the financial incentive agreement.
(1) (A) The award of incentives under this section is at the discretion of the Director of the Arkansas Economic Development Commission.(B) The director may offer a tax credit of up to ten percent (10%) under this subsection.
(A) The award of incentives under this section is at the discretion of the Director of the Arkansas Economic Development Commission.
(B) The director may offer a tax credit of up to ten percent (10%) under this subsection.
(2) If offered, an application for an income tax credit or a sales and use tax credit under this section shall be submitted to the Arkansas Economic Development Commission.
(3) Eligibility for incentives under this subsection and subsections (c)-(e) of this section is dependent upon the tier in which the project is located, as follows:(A) For tier 1 counties, the business shall invest five million dollars ($5,000,000) or more and have an annual payroll for new full-time permanent employees in excess of two million dollars ($2,000,000);(B) For tier 2 counties, the business shall invest three million seven hundred fifty thousand dollars ($3,750,000) or more and have an annual payroll for new full-time permanent employees in excess of one million five hundred thousand dollars ($1,500,000);(C) For tier 3 counties, the business shall invest three million dollars ($3,000,000) or more and have an annual payroll for new full-time permanent employees in excess of one million two hundred thousand dollars ($1,200,000); and(D) For tier 4 counties, the business shall invest two million dollars ($2,000,000) or more and have an annual payroll for new full-time permanent employees in excess of eight hundred thousand dollars ($800,000).
(A) For tier 1 counties, the business shall invest five million dollars ($5,000,000) or more and have an annual payroll for new full-time permanent employees in excess of two million dollars ($2,000,000);
(B) For tier 2 counties, the business shall invest three million seven hundred fifty thousand dollars ($3,750,000) or more and have an annual payroll for new full-time permanent employees in excess of one million five hundred thousand dollars ($1,500,000);
(C) For tier 3 counties, the business shall invest three million dollars ($3,000,000) or more and have an annual payroll for new full-time permanent employees in excess of one million two hundred thousand dollars ($1,200,000); and
(D) For tier 4 counties, the business shall invest two million dollars ($2,000,000) or more and have an annual payroll for new full-time permanent employees in excess of eight hundred thousand dollars ($800,000).
(4) (A) An approved financial incentive agreement shall be transmitted to the qualified business and the Department of Finance and Administration.(B) Before the commission approves a financial incentive agreement under this subsection, the qualified business shall elect to receive the tax credits allowed under this subsection as:(i) Sales and use tax credits; or(ii) Income tax credits.
(A) An approved financial incentive agreement shall be transmitted to the qualified business and the Department of Finance and Administration.
(B) Before the commission approves a financial incentive agreement under this subsection, the qualified business shall elect to receive the tax credits allowed under this subsection as:(i) Sales and use tax credits; or(ii) Income tax credits.
(i) Sales and use tax credits; or
(ii) Income tax credits.
(5) A qualified business shall reach the investment threshold within four (4) years from the date of the approved financial incentive agreement, except for lease payments authorized by subdivision (b)(6)(D) of this section or subdivision (c)(6) of this section.
(6) (A) (i) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs annually at the end of each calendar year for the term of the financial incentive agreement.(ii) The department shall authorize an income tax credit or a sales and use tax credit of up to ten percent (10%) of total audited eligible project costs.(B) The amount of the income tax credit or sales and use tax credit authorized under subdivision (b)(6)(A)(ii) of this section may offset up to fifty percent (50%) of a qualified business's income tax or sales and use tax liability annually.(C) Unused tax credits under this subdivision (b)(6) may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first.(D) A qualified business that enters into a lease for a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive.
(A) (i) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs annually at the end of each calendar year for the term of the financial incentive agreement.(ii) The department shall authorize an income tax credit or a sales and use tax credit of up to ten percent (10%) of total audited eligible project costs.
(i) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs annually at the end of each calendar year for the term of the financial incentive agreement.
(ii) The department shall authorize an income tax credit or a sales and use tax credit of up to ten percent (10%) of total audited eligible project costs.
(B) The amount of the income tax credit or sales and use tax credit authorized under subdivision (b)(6)(A)(ii) of this section may offset up to fifty percent (50%) of a qualified business's income tax or sales and use tax liability annually.
(C) Unused tax credits under this subdivision (b)(6) may be carried forward for up to nine (9) years after the year in which the credit was first earned or until the tax credits are exhausted, whichever occurs first.
(D) A qualified business that enters into a lease for a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive.
(7) After receiving an approved financial incentive agreement from the commission, a qualified business shall certify to the department the eligible project costs and average hourly wages annually at the end of each tax year for the term of the financial incentive agreement.
(c) (1) (A) An application for a modernization and automation tax credit under this subsection shall be submitted to the commission.(B) (i) The application shall be submitted to the commission before any project costs are incurred.(ii) With the exception of preconstruction costs, only project costs incurred after the commission's approval of the application are eligible for the modernization and automation tax credit.(C) Upon the approval of the application, the commission shall execute a financial incentive agreement with the applicant that shall:(i) Require that the project forming the basis of the application be completed within six (6) years from the date of the execution of the financial incentive agreement;(ii) Require that the applicant maintain within the state the current yearly average level of payroll and employment during the course of the project and for twenty-four (24) months after the termination of the project; and(iii) Contain a forfeiture provision that requires an applicant to return any modernization and automation tax credits claimed for the project if the applicant is found to have breached the financial incentive agreement.(2) The modernization and automation tax credit under this subsection is available only to Arkansas businesses that:(A) Have been in continuous operation in the state for at least two (2) years;(B) Incur a minimum of twenty-five million dollars ($25,000,000) in project costs;(C) Hold a direct-pay sales and use tax permit from the department before submitting an application for incentives; and(D) Have received a positive cost-benefit analysis from the commission for the project that forms the basis of the businesses' financial incentive agreement.(3) (A) If allowed, the modernization and automation tax credit shall be up to five percent (5%) of the eligible project costs.(B) The maximum modernization and automation tax credit that may be used in a fiscal year by an applicant is two million dollars ($2,000,000).(C) Unused modernization and automation tax credits may be carried forward for a period of up to five (5) years beyond the year in which the modernization and automation tax credit was first earned.(4) (A) Upon determining that a project is eligible for a modernization and automation tax credit under this subsection, the director shall certify to the Secretary of the Department of Finance and Administration that the project qualifies and shall transmit the documents upon which the certification was based.(B) The department shall provide forms to the qualified business on which to claim the modernization and automation tax credit.(C) At the end of the calendar year in which the application is made and at the end of each calendar year thereafter until the project is completed, the qualified business shall certify on the forms provided by the department the project costs incurred during the preceding calendar year.(D) Upon receipt of the form certifying the project costs, the department shall determine the amount due as a credit for the preceding calendar year and issue a memorandum of credit to the qualified business.(5) If a business applies for a modernization and automation tax credit under this subsection and a job-creation tax credit under § 15-4-2705, the financial incentive agreements for the incentives shall be approved within one (1) year of each other.(6) A qualified business that leases a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive.
(1) (A) An application for a modernization and automation tax credit under this subsection shall be submitted to the commission.(B) (i) The application shall be submitted to the commission before any project costs are incurred.(ii) With the exception of preconstruction costs, only project costs incurred after the commission's approval of the application are eligible for the modernization and automation tax credit.(C) Upon the approval of the application, the commission shall execute a financial incentive agreement with the applicant that shall:(i) Require that the project forming the basis of the application be completed within six (6) years from the date of the execution of the financial incentive agreement;(ii) Require that the applicant maintain within the state the current yearly average level of payroll and employment during the course of the project and for twenty-four (24) months after the termination of the project; and(iii) Contain a forfeiture provision that requires an applicant to return any modernization and automation tax credits claimed for the project if the applicant is found to have breached the financial incentive agreement.
(A) An application for a modernization and automation tax credit under this subsection shall be submitted to the commission.
(B) (i) The application shall be submitted to the commission before any project costs are incurred.(ii) With the exception of preconstruction costs, only project costs incurred after the commission's approval of the application are eligible for the modernization and automation tax credit.
(i) The application shall be submitted to the commission before any project costs are incurred.
(ii) With the exception of preconstruction costs, only project costs incurred after the commission's approval of the application are eligible for the modernization and automation tax credit.
(C) Upon the approval of the application, the commission shall execute a financial incentive agreement with the applicant that shall:(i) Require that the project forming the basis of the application be completed within six (6) years from the date of the execution of the financial incentive agreement;(ii) Require that the applicant maintain within the state the current yearly average level of payroll and employment during the course of the project and for twenty-four (24) months after the termination of the project; and(iii) Contain a forfeiture provision that requires an applicant to return any modernization and automation tax credits claimed for the project if the applicant is found to have breached the financial incentive agreement.
(i) Require that the project forming the basis of the application be completed within six (6) years from the date of the execution of the financial incentive agreement;
(ii) Require that the applicant maintain within the state the current yearly average level of payroll and employment during the course of the project and for twenty-four (24) months after the termination of the project; and
(iii) Contain a forfeiture provision that requires an applicant to return any modernization and automation tax credits claimed for the project if the applicant is found to have breached the financial incentive agreement.
(2) The modernization and automation tax credit under this subsection is available only to Arkansas businesses that:(A) Have been in continuous operation in the state for at least two (2) years;(B) Incur a minimum of twenty-five million dollars ($25,000,000) in project costs;(C) Hold a direct-pay sales and use tax permit from the department before submitting an application for incentives; and(D) Have received a positive cost-benefit analysis from the commission for the project that forms the basis of the businesses' financial incentive agreement.
(A) Have been in continuous operation in the state for at least two (2) years;
(B) Incur a minimum of twenty-five million dollars ($25,000,000) in project costs;
(C) Hold a direct-pay sales and use tax permit from the department before submitting an application for incentives; and
(D) Have received a positive cost-benefit analysis from the commission for the project that forms the basis of the businesses' financial incentive agreement.
(3) (A) If allowed, the modernization and automation tax credit shall be up to five percent (5%) of the eligible project costs.(B) The maximum modernization and automation tax credit that may be used in a fiscal year by an applicant is two million dollars ($2,000,000).(C) Unused modernization and automation tax credits may be carried forward for a period of up to five (5) years beyond the year in which the modernization and automation tax credit was first earned.
(A) If allowed, the modernization and automation tax credit shall be up to five percent (5%) of the eligible project costs.
(B) The maximum modernization and automation tax credit that may be used in a fiscal year by an applicant is two million dollars ($2,000,000).
(C) Unused modernization and automation tax credits may be carried forward for a period of up to five (5) years beyond the year in which the modernization and automation tax credit was first earned.
(4) (A) Upon determining that a project is eligible for a modernization and automation tax credit under this subsection, the director shall certify to the Secretary of the Department of Finance and Administration that the project qualifies and shall transmit the documents upon which the certification was based.(B) The department shall provide forms to the qualified business on which to claim the modernization and automation tax credit.(C) At the end of the calendar year in which the application is made and at the end of each calendar year thereafter until the project is completed, the qualified business shall certify on the forms provided by the department the project costs incurred during the preceding calendar year.(D) Upon receipt of the form certifying the project costs, the department shall determine the amount due as a credit for the preceding calendar year and issue a memorandum of credit to the qualified business.
(A) Upon determining that a project is eligible for a modernization and automation tax credit under this subsection, the director shall certify to the Secretary of the Department of Finance and Administration that the project qualifies and shall transmit the documents upon which the certification was based.
(B) The department shall provide forms to the qualified business on which to claim the modernization and automation tax credit.
(C) At the end of the calendar year in which the application is made and at the end of each calendar year thereafter until the project is completed, the qualified business shall certify on the forms provided by the department the project costs incurred during the preceding calendar year.
(D) Upon receipt of the form certifying the project costs, the department shall determine the amount due as a credit for the preceding calendar year and issue a memorandum of credit to the qualified business.
(5) If a business applies for a modernization and automation tax credit under this subsection and a job-creation tax credit under § 15-4-2705, the financial incentive agreements for the incentives shall be approved within one (1) year of each other.
(6) A qualified business that leases a building or equipment for a period of at least five (5) years may count the lease payments for the first five (5) years as a qualifying expenditure for the investment threshold required for this investment incentive.
(d) (1) (A) An application for a state and local sales and use tax refund for a new or expanding business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the business will be located.(B) The resolution shall:(i) Endorse the business's participation in this sales and use tax refund program; and(ii) Specify that the department is authorized to refund local sales taxes to the qualified business.(C) To qualify for a refund under this subsection, a qualified business shall meet the minimum investment thresholds for the tier in which the qualified business expands or locates, as follows:(i) For tier 1 counties, the minimum investment threshold is at least five hundred thousand dollars ($500,000);(ii) For tier 2 counties, the minimum investment threshold is at least four hundred thousand dollars ($400,000);(iii) For tier 3 counties, the minimum investment threshold is at least three hundred thousand dollars ($300,000); and(iv) For tier 4 counties, the minimum investment threshold is at least two hundred thousand dollars ($200,000).(2) (A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building.(ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.(B) A refund shall not be authorized for:(i) Routine operating expenditures; or(ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.(3) (A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission.(B) The commission shall not approve an amendment under subdivision (d)(3)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan.(4) All claims for sales and use tax refunds under this subsection shall be denied unless they are filed with the department within three (3) years from the date of the qualified purchase or purchases.(5) (A) (i) To be eligible for the incentives under this subsection, a qualified business shall meet all payroll creation requirements of its approved financial incentive agreement under § 15-4-2705 or § 15-4-2707.(ii) However, a business may apply for incentives under this subsection if: (a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or (b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years.(B) The financial incentive agreement under § 15-4-2705 or § 15-4-2707 shall be approved within two (2) years after the financial incentive agreement under this subsection is approved.
(1) (A) An application for a state and local sales and use tax refund for a new or expanding business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the business will be located.(B) The resolution shall:(i) Endorse the business's participation in this sales and use tax refund program; and(ii) Specify that the department is authorized to refund local sales taxes to the qualified business.(C) To qualify for a refund under this subsection, a qualified business shall meet the minimum investment thresholds for the tier in which the qualified business expands or locates, as follows:(i) For tier 1 counties, the minimum investment threshold is at least five hundred thousand dollars ($500,000);(ii) For tier 2 counties, the minimum investment threshold is at least four hundred thousand dollars ($400,000);(iii) For tier 3 counties, the minimum investment threshold is at least three hundred thousand dollars ($300,000); and(iv) For tier 4 counties, the minimum investment threshold is at least two hundred thousand dollars ($200,000).
(A) An application for a state and local sales and use tax refund for a new or expanding business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the business will be located.
(B) The resolution shall:(i) Endorse the business's participation in this sales and use tax refund program; and(ii) Specify that the department is authorized to refund local sales taxes to the qualified business.
(i) Endorse the business's participation in this sales and use tax refund program; and
(ii) Specify that the department is authorized to refund local sales taxes to the qualified business.
(C) To qualify for a refund under this subsection, a qualified business shall meet the minimum investment thresholds for the tier in which the qualified business expands or locates, as follows:(i) For tier 1 counties, the minimum investment threshold is at least five hundred thousand dollars ($500,000);(ii) For tier 2 counties, the minimum investment threshold is at least four hundred thousand dollars ($400,000);(iii) For tier 3 counties, the minimum investment threshold is at least three hundred thousand dollars ($300,000); and(iv) For tier 4 counties, the minimum investment threshold is at least two hundred thousand dollars ($200,000).
(i) For tier 1 counties, the minimum investment threshold is at least five hundred thousand dollars ($500,000);
(ii) For tier 2 counties, the minimum investment threshold is at least four hundred thousand dollars ($400,000);
(iii) For tier 3 counties, the minimum investment threshold is at least three hundred thousand dollars ($300,000); and
(iv) For tier 4 counties, the minimum investment threshold is at least two hundred thousand dollars ($200,000).
(2) (A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building.(ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.(B) A refund shall not be authorized for:(i) Routine operating expenditures; or(ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.
(A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building.(ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.
(i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building.
(ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.
(B) A refund shall not be authorized for:(i) Routine operating expenditures; or(ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.
(i) Routine operating expenditures; or
(ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.
(3) (A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission.(B) The commission shall not approve an amendment under subdivision (d)(3)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan.
(A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission.
(B) The commission shall not approve an amendment under subdivision (d)(3)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan.
(4) All claims for sales and use tax refunds under this subsection shall be denied unless they are filed with the department within three (3) years from the date of the qualified purchase or purchases.
(5) (A) (i) To be eligible for the incentives under this subsection, a qualified business shall meet all payroll creation requirements of its approved financial incentive agreement under § 15-4-2705 or § 15-4-2707.(ii) However, a business may apply for incentives under this subsection if: (a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or (b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years.(B) The financial incentive agreement under § 15-4-2705 or § 15-4-2707 shall be approved within two (2) years after the financial incentive agreement under this subsection is approved.
(A) (i) To be eligible for the incentives under this subsection, a qualified business shall meet all payroll creation requirements of its approved financial incentive agreement under § 15-4-2705 or § 15-4-2707.(ii) However, a business may apply for incentives under this subsection if: (a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or (b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years.
(i) To be eligible for the incentives under this subsection, a qualified business shall meet all payroll creation requirements of its approved financial incentive agreement under § 15-4-2705 or § 15-4-2707.
(ii) However, a business may apply for incentives under this subsection if: (a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or (b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years.
(a) The business has an existing financial incentive agreement approved under this subdivision (d)(5)(A) and the provisions of subdivision (d)(5)(B) of this section have been met within the previous four (4) years; or
(b) The business has signed a financial incentive agreement approved under § 15-4-2705 or § 15-4-2707 within the previous four (4) years.
(B) The financial incentive agreement under § 15-4-2705 or § 15-4-2707 shall be approved within two (2) years after the financial incentive agreement under this subsection is approved.
(e) (1) A targeted business may be eligible for a refund of state and local sales and use taxes for qualified expenditures at the discretion of the director if:(A) (i) The annual payroll of the targeted business for Arkansas taxpayers is greater than one hundred thousand dollars ($100,000) and less than one million dollars ($1,000,000).(ii) The payroll requirement in subdivision (e)(1)(A)(i) of this section applies only to the initial eligibility determination and does not preclude a qualified business from receiving incentives if, at any time after the financial incentive agreement is approved, actual payroll does not satisfy the requirements in subdivision (e)(1)(A)(i) of this section; and(B) The targeted business shows proof of an equity investment of at least two hundred fifty thousand dollars ($250,000).(2) (A) An application for the targeted business state and local sales and use tax refund program for a new or expanding targeted business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the targeted business will be located.(B) The resolution shall:(i) Endorse the business's participation in this sales and use tax refund program; and(ii) Specify that the department is authorized to refund local sales and use taxes to the targeted business.(3) An approved financial incentive agreement and any other pertinent documentation shall be forwarded to the secretary.(4) (A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building.(ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.(B) A refund shall not be authorized for:(i) Routine operating expenditures; or(ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.(5) (A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission.(B) The commission shall not approve an amendment under subdivision (e)(5)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan.(6) All claims for sales and use tax refunds under this subsection shall be denied unless they are filed with the department within three (3) years after the date of the qualified purchase or purchases.(7) If a targeted business plans to apply for benefits under this subsection and also plans to apply for benefits under § 15-4-2709, the financial incentive agreement under § 15-4-2709 must be signed within twenty-four (24) months of signing the financial incentive agreement under this subsection and comply with the eligibility requirements of the financial incentive agreements.(8) To be eligible for the incentives under this subsection, a targeted business shall meet all payroll creation requirements of an approved financial incentive agreement under § 15-4-2707 or § 15-4-2709 within two (2) years of the date of the approved financial incentive agreement under this subsection or other subsequent date if approved by the director.
(1) A targeted business may be eligible for a refund of state and local sales and use taxes for qualified expenditures at the discretion of the director if:(A) (i) The annual payroll of the targeted business for Arkansas taxpayers is greater than one hundred thousand dollars ($100,000) and less than one million dollars ($1,000,000).(ii) The payroll requirement in subdivision (e)(1)(A)(i) of this section applies only to the initial eligibility determination and does not preclude a qualified business from receiving incentives if, at any time after the financial incentive agreement is approved, actual payroll does not satisfy the requirements in subdivision (e)(1)(A)(i) of this section; and(B) The targeted business shows proof of an equity investment of at least two hundred fifty thousand dollars ($250,000).
(A) (i) The annual payroll of the targeted business for Arkansas taxpayers is greater than one hundred thousand dollars ($100,000) and less than one million dollars ($1,000,000).(ii) The payroll requirement in subdivision (e)(1)(A)(i) of this section applies only to the initial eligibility determination and does not preclude a qualified business from receiving incentives if, at any time after the financial incentive agreement is approved, actual payroll does not satisfy the requirements in subdivision (e)(1)(A)(i) of this section; and
(i) The annual payroll of the targeted business for Arkansas taxpayers is greater than one hundred thousand dollars ($100,000) and less than one million dollars ($1,000,000).
(ii) The payroll requirement in subdivision (e)(1)(A)(i) of this section applies only to the initial eligibility determination and does not preclude a qualified business from receiving incentives if, at any time after the financial incentive agreement is approved, actual payroll does not satisfy the requirements in subdivision (e)(1)(A)(i) of this section; and
(B) The targeted business shows proof of an equity investment of at least two hundred fifty thousand dollars ($250,000).
(2) (A) An application for the targeted business state and local sales and use tax refund program for a new or expanding targeted business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the targeted business will be located.(B) The resolution shall:(i) Endorse the business's participation in this sales and use tax refund program; and(ii) Specify that the department is authorized to refund local sales and use taxes to the targeted business.
(A) An application for the targeted business state and local sales and use tax refund program for a new or expanding targeted business shall be filed with the commission contingent upon the approval of an endorsement resolution from the governing authority of a municipality or county, or both, in whose jurisdiction the targeted business will be located.
(B) The resolution shall:(i) Endorse the business's participation in this sales and use tax refund program; and(ii) Specify that the department is authorized to refund local sales and use taxes to the targeted business.
(i) Endorse the business's participation in this sales and use tax refund program; and
(ii) Specify that the department is authorized to refund local sales and use taxes to the targeted business.
(3) An approved financial incentive agreement and any other pertinent documentation shall be forwarded to the secretary.
(4) (A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building.(ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.(B) A refund shall not be authorized for:(i) Routine operating expenditures; or(ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.
(A) (i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building.(ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.
(i) The secretary shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use taxes dedicated to the Educational Adequacy Fund and the Conservation Tax Fund on the purchases of the material used in the construction of a building or buildings or any addition, modernization, or improvement thereon for housing any new or expanding qualified business and machinery and equipment to be located in or in connection with such a building.
(ii) The local sales and use tax may be refunded only from the municipality or county, or both, in which the qualified business is located.
(B) A refund shall not be authorized for:(i) Routine operating expenditures; or(ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.
(i) Routine operating expenditures; or
(ii) The purchase of replacement items previously purchased as part of a project under this subsection unless the items previously purchased are necessary for the implementation or completion of the project.
(5) (A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission.(B) The commission shall not approve an amendment under subdivision (e)(5)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan.
(A) Subject to the approval of the commission, a qualified business may make changes to a project by written amendment to the project plan filed with the commission.
(B) The commission shall not approve an amendment under subdivision (e)(5)(A) of this section that results in a cost increase of more than twenty-five percent (25%) of the initial project plan.
(6) All claims for sales and use tax refunds under this subsection shall be denied unless they are filed with the department within three (3) years after the date of the qualified purchase or purchases.
(7) If a targeted business plans to apply for benefits under this subsection and also plans to apply for benefits under § 15-4-2709, the financial incentive agreement under § 15-4-2709 must be signed within twenty-four (24) months of signing the financial incentive agreement under this subsection and comply with the eligibility requirements of the financial incentive agreements.
(8) To be eligible for the incentives under this subsection, a targeted business shall meet all payroll creation requirements of an approved financial incentive agreement under § 15-4-2707 or § 15-4-2709 within two (2) years of the date of the approved financial incentive agreement under this subsection or other subsequent date if approved by the director.
(f) (1) The director may award an eligible business with a corporate headquarters relocating to this state an income tax credit of up to fifty percent (50%) of the payroll for the new full-time permanent employees of a corporate headquarters relocating to this state.(2) An eligible business shall receive a positive cost-benefit analysis from the commission for the corporate headquarters relocating to this state before being offered a financial incentive agreement under this subsection.(3) Eligibility for incentives under this subsection is dependent upon the tier of the county in which the corporate headquarters is relocating, as follows:(A) For tier 1 counties, the eligible business shall create at least three hundred (300) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred fifty percent (150%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating;(B) For tier 2 counties, the eligible business shall create at least two hundred fifty (250) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred twenty-five percent (125%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating;(C) For tier 3 counties, the eligible business shall create at least two hundred (200) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred fifteen percent (115%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating; and(D) For tier 4 counties, the eligible business shall create at least one hundred fifty (150) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred ten percent (110%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating.(4) (A) At the end of the calendar year in which a qualified business executes an approved financial incentive agreement under this subsection and at the end of each subsequent calendar year for the term of the financial incentive agreement, the qualified business shall certify, on a form provided by the department, the requisite payroll and number of new full-time permanent employees related to the relocated corporate headquarters during the preceding calendar year.(B) (i) Upon receipt of the certification form required under subdivision (f)(4)(A) of this section, the Revenue Division of the Department of Finance and Administration shall audit and verify the certification form.(ii) After the audit and verification required under subdivision (f)(4)(B)(i) of this section, the department shall determine the amount of the income tax credit earned by the qualified business for the preceding calendar year and issue an income tax credit to the qualified business to be applied against the qualified business's income tax liability.(5) The amount of the income tax credit allowed under this subsection that may offset a qualified business's income tax liability is as follows:(A) For the first five (5) years from the year following the date of the execution of the financial incentive agreement, up to one hundred percent (100%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;(B) For the sixth year from the year following the date of the execution of the financial incentive agreement, up to eighty percent (80%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;(C) For the seventh year from the year following the date of the execution of the financial incentive agreement, up to sixty percent (60%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;(D) For the eighth year from the year following the date of the execution of the financial incentive agreement, up to forty percent (40%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;(E) For the ninth year from the year following the date of the execution of the financial incentive agreement, up to twenty percent (20%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection; and(F) For the tenth and subsequent years following the date of the execution of the financial incentive agreement, the qualified business's income tax liability resulting from the relocation of the corporate headquarters shall not be offset by the income tax credit allowed under this subsection.(6) Unused income tax credits authorized under this subsection shall not carry forward to subsequent tax years.(7) The income tax credits allowed under this subsection shall not be sold or transferred.(8) The employment and payroll requirements provided for in this subsection shall be met within four (4) years of the date of the approved financial incentive agreement for the qualified business.
(1) The director may award an eligible business with a corporate headquarters relocating to this state an income tax credit of up to fifty percent (50%) of the payroll for the new full-time permanent employees of a corporate headquarters relocating to this state.
(2) An eligible business shall receive a positive cost-benefit analysis from the commission for the corporate headquarters relocating to this state before being offered a financial incentive agreement under this subsection.
(3) Eligibility for incentives under this subsection is dependent upon the tier of the county in which the corporate headquarters is relocating, as follows:(A) For tier 1 counties, the eligible business shall create at least three hundred (300) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred fifty percent (150%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating;(B) For tier 2 counties, the eligible business shall create at least two hundred fifty (250) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred twenty-five percent (125%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating;(C) For tier 3 counties, the eligible business shall create at least two hundred (200) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred fifteen percent (115%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating; and(D) For tier 4 counties, the eligible business shall create at least one hundred fifty (150) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred ten percent (110%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating.
(A) For tier 1 counties, the eligible business shall create at least three hundred (300) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred fifty percent (150%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating;
(B) For tier 2 counties, the eligible business shall create at least two hundred fifty (250) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred twenty-five percent (125%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating;
(C) For tier 3 counties, the eligible business shall create at least two hundred (200) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred fifteen percent (115%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating; and
(D) For tier 4 counties, the eligible business shall create at least one hundred fifty (150) new full-time permanent employees with an average hourly wage that exceeds the lesser of one hundred ten percent (110%) of the county or state average hourly wage for the county to which the corporate headquarters is relocating.
(4) (A) At the end of the calendar year in which a qualified business executes an approved financial incentive agreement under this subsection and at the end of each subsequent calendar year for the term of the financial incentive agreement, the qualified business shall certify, on a form provided by the department, the requisite payroll and number of new full-time permanent employees related to the relocated corporate headquarters during the preceding calendar year.(B) (i) Upon receipt of the certification form required under subdivision (f)(4)(A) of this section, the Revenue Division of the Department of Finance and Administration shall audit and verify the certification form.(ii) After the audit and verification required under subdivision (f)(4)(B)(i) of this section, the department shall determine the amount of the income tax credit earned by the qualified business for the preceding calendar year and issue an income tax credit to the qualified business to be applied against the qualified business's income tax liability.
(A) At the end of the calendar year in which a qualified business executes an approved financial incentive agreement under this subsection and at the end of each subsequent calendar year for the term of the financial incentive agreement, the qualified business shall certify, on a form provided by the department, the requisite payroll and number of new full-time permanent employees related to the relocated corporate headquarters during the preceding calendar year.
(B) (i) Upon receipt of the certification form required under subdivision (f)(4)(A) of this section, the Revenue Division of the Department of Finance and Administration shall audit and verify the certification form.(ii) After the audit and verification required under subdivision (f)(4)(B)(i) of this section, the department shall determine the amount of the income tax credit earned by the qualified business for the preceding calendar year and issue an income tax credit to the qualified business to be applied against the qualified business's income tax liability.
(i) Upon receipt of the certification form required under subdivision (f)(4)(A) of this section, the Revenue Division of the Department of Finance and Administration shall audit and verify the certification form.
(ii) After the audit and verification required under subdivision (f)(4)(B)(i) of this section, the department shall determine the amount of the income tax credit earned by the qualified business for the preceding calendar year and issue an income tax credit to the qualified business to be applied against the qualified business's income tax liability.
(5) The amount of the income tax credit allowed under this subsection that may offset a qualified business's income tax liability is as follows:(A) For the first five (5) years from the year following the date of the execution of the financial incentive agreement, up to one hundred percent (100%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;(B) For the sixth year from the year following the date of the execution of the financial incentive agreement, up to eighty percent (80%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;(C) For the seventh year from the year following the date of the execution of the financial incentive agreement, up to sixty percent (60%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;(D) For the eighth year from the year following the date of the execution of the financial incentive agreement, up to forty percent (40%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;(E) For the ninth year from the year following the date of the execution of the financial incentive agreement, up to twenty percent (20%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection; and(F) For the tenth and subsequent years following the date of the execution of the financial incentive agreement, the qualified business's income tax liability resulting from the relocation of the corporate headquarters shall not be offset by the income tax credit allowed under this subsection.
(A) For the first five (5) years from the year following the date of the execution of the financial incentive agreement, up to one hundred percent (100%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;
(B) For the sixth year from the year following the date of the execution of the financial incentive agreement, up to eighty percent (80%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;
(C) For the seventh year from the year following the date of the execution of the financial incentive agreement, up to sixty percent (60%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;
(D) For the eighth year from the year following the date of the execution of the financial incentive agreement, up to forty percent (40%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection;
(E) For the ninth year from the year following the date of the execution of the financial incentive agreement, up to twenty percent (20%) of the qualified business's income tax liability resulting from the relocation of the corporate headquarters may be offset by the income tax credit allowed under this subsection; and
(F) For the tenth and subsequent years following the date of the execution of the financial incentive agreement, the qualified business's income tax liability resulting from the relocation of the corporate headquarters shall not be offset by the income tax credit allowed under this subsection.
(6) Unused income tax credits authorized under this subsection shall not carry forward to subsequent tax years.
(7) The income tax credits allowed under this subsection shall not be sold or transferred.
(8) The employment and payroll requirements provided for in this subsection shall be met within four (4) years of the date of the approved financial incentive agreement for the qualified business.