Title 26, Taxation

(a) The Arkansas Natural Resources Commission is charged with the responsibility of promulgating and administering rules related to the creation, restoration, and conservation of wetlands and riparian zones with the intent of qualifying for the tax credits provided for in this su…

(a) (1) (A) Wetland and Riparian Zone Creation and Restoration Tax Credit. (B) A taxpayer wishing to obtain a wetland and riparian zone creation and restoration tax credit shall submit an application to the Department of Agriculture.(C) After review of the application under subdi…

(a) (1) All projects must be completed and properly functioning within three (3) years of the date of the certificate of tax credit approval, except if the Department of Agriculture determines that failure to comply with this subdivision (a)(1) is the result of conditions beyond …

For purposes of this subchapter, the recordkeeping provisions of § 26-18-506 requiring a taxpayer to maintain records for six (6) years after a return is filed shall be extended to require the taxpayer claiming a wetland and riparian zone creation and restoration tax credit under…

(a) Following the end of every calendar year, the Department of Finance and Administration shall compile the cumulative total amount of tax credits used pursuant to the provisions of this subchapter. (b) (1) The tax credits established by this subchapter and the availability of t…

(1) As used in this subchapter, unless the context clearly requires otherwise:(1) “Authority” means the Arkansas Development Finance Authority, or its successor agency;(2) “Eligibility statement” means a statement authorized and issued by the authority certifying that a given pro…

(a) A taxpayer owning an interest in a qualified project shall be allowed a state tax credit, to be termed the Arkansas low-income housing tax credit, if the Arkansas Development Finance Authority issues an eligibility statement for that project. For any taxpayer which is, for st…

(a) The owner of a qualified project eligible for the Arkansas low-income housing tax credit shall submit, at the time of filing the owner's income or gross premium tax return, an eligibility statement. In the case of failure to attach the eligibility statement, no Arkansas low-i…

(a) All or any portion of Arkansas low-income housing tax credit issued in accordance with the provisions of this subchapter may be transferred, sold, or assigned but only in connection with the sale or transfer of the interest in the qualified project or in the taxpayer. (b) An …

The Secretary of the Department of Finance and Administration and the Arkansas Development Finance Authority shall promulgate rules necessary to administer the provisions of this subchapter. No rule or portion of a rule promulgated under the authority of this section shall become…

(a) There shall be allowed a deduction from net income for a qualified small business net capital gain recognized on the sale of qualified small business stock for any taxable year in an amount equal to the following:(1) For qualified small business stock held for a period of fiv…

The provisions of this subchapter shall be in effect for taxable years beginning on and after January 1, 1998.

It is recognized that the reimbursement or payment by an employer of or for tuition for employee training or courses that aid in improving job skills is in the best interest of the state. Increasing the skills and abilities of the workforce allows Arkansas to compete for jobs tha…

(a) There shall be allowed a credit against the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., equal to thirty percent (30%) of the cost of tuition reimbursed or paid by an employer on behalf of a full-time, permanent employee for the cost of tuition, book…

(1) The following types of businesses are eligible for the tax benefit provided by § 26-51-1902:(1) A manufacturer classified in sectors 31-33 in the North American Industry Classification System, as it existed on January 1, 2005;(2) A business:(A) Primarily engaged in:(i) The de…

This subchapter may be known and cited as the “Manufacturer's Investment Tax Credit Act”.

(1) As used in this subchapter:(1) “Director” means the Director of the Arkansas Economic Development Commission;(2) “Eligible business” means any person engaged in a business classified as manufacturing of paper and allied products in Standard Industrial Classification Code 2600…

(a) A recipient of benefits under this subchapter is precluded from receiving benefits under the Arkansas Enterprise Zone Act of 1993, § 15-4-1701 et seq., for the same project. (b) A recipient of benefits under this subchapter is precluded from receiving benefits under the Econo…

There is granted a credit against the state income tax liability of an eligible business of seven percent (7%) of the amount of the total project cost of any project, subject to the limit set out in § 26-51-2005.

(a) (1) In order to qualify for and receive the credits afforded by this subchapter, any eligible business undertaking a project shall submit a project plan to the Director of the Arkansas Economic Development Commission at least thirty (30) calendar days prior to the start of co…

(a) A person claiming credit under this subchapter is a “taxpayer” within the meaning of § 26-18-104 and shall be subject to all applicable provisions of § 26-18-104. (b) Administration of the provisions of this subchapter shall be under the provisions of the Arkansas Tax Procedu…

(a) The state income tax credit provided by this subchapter shall not be claimed on any income tax return filed or required by law to be filed prior to July 1, 2003. (b) State income tax credits arising under this subchapter that but for the provisions of this section would be av…

(a) A tax is imposed upon the entire income of every resident, individual, trust, or estate. The tax shall be levied, collected, and paid annually upon the entire net income as defined and computed in this chapter at the following rates, giving effect to the tax credits provided …

(a) A tax is imposed and shall be assessed, levied, collected, and paid annually at the rates specified in § 26-51-201 upon and with respect to the entire net income as defined in this chapter, except as provided in this section, from all property owned and from every business, t…

(a) The tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., shall be imposed upon resident fiduciaries, which tax shall be levied, collected, and paid annually with respect to:(1) That part of the net income of estates or trusts which has not been distributed or becom…

(a) Every railroad or other public utility, whether organized under the laws of this state or any other state or the federal government, shall be subject to the provisions of the Income Tax Act of 1929, § 26-51-101 et seq., and shall pay the state income tax levied by this subcha…

(a) (1) Every corporation organized under the laws of this state shall pay annually an income tax with respect to carrying on or doing business on the entire net income of the corporation, as now defined by the laws of the State of Arkansas, received by the corporation during the…

(a) All income derived from the operation of any business or commercial enterprise or the sale, rental, or other disposition of any property used by a church in its operation of a business or commercial enterprise in this state shall be subject to the Arkansas income tax, except …

This subchapter shall be known as and may be cited as the “Gift of Life Act”.

The General Assembly finds that organ donation is a courageous, admirable, and vital demonstration of one's commitment to the value of human life and, in many instances, is necessary for the preservation of life itself.

(a) As used in this section, “human organ” means all or part of a human's liver, pancreas, kidney, intestine, lung, or bone marrow. (b) In computing net income, a taxpayer may deduct up to ten thousand dollars ($10,000) if, while living, the taxpayer or the taxpayer's dependent w…

This subchapter shall be known and may be cited as the “Arkansas Historic Rehabilitation Income Tax Credit Act”.

The purpose of this subchapter is to encourage economic development and community revitalization within existing state and federal infrastructure by providing an income tax credit to promote the rehabilitation of historic structures throughout Arkansas.

(1) As used in this subchapter:(1) “Arkansas historic rehabilitation income tax credit” means an income tax credit against the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., and the premium tax levied under §§ 26-57-601 — 26-57-605 that includes:(A) An inc…

(a) (1) There is allowed an income tax credit up to the amount of tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., or the premium tax to a holder of an Arkansas historic rehabilitation income tax credit.(2) Beginning March 20, 2015, the income tax credit allowed un…

(a) (1) A holder shall submit the certification of completion and documents proving an assignment, if any, with the appropriate tax collection authority at the time of filing the holder's income tax return or premium tax return.(2) The appropriate tax collection authority may ref…

(a) (1) The Division of Arkansas Heritage may charge a fee to process:(A) An application for an Arkansas historic rehabilitation income tax credit; and(B) A request to record transfers of interests in an Arkansas historic rehabilitation income tax credit to other holders.(2) The …

(a) The Division of Arkansas Heritage shall promulgate rules to implement this subchapter that shall include criteria for the prioritizing of the rehabilitation applications and that will stimulate the local economy where the property is located, including without limitation the …

This subchapter is effective for tax years beginning on or after January 1, 2009, and ending on or before December 31, 2037.

This subchapter may be cited as the “Lottery Withholding Act”.

(1) As used in this subchapter:(1) “Claim center” means a claim center established by the Office of the Arkansas Lottery under § 23-115-207;(2) “Lottery” means the same as defined in § 23-115-103; and(3) “Lottery winnings” means the proceeds of a lottery prize based on the total …

(a) This subchapter shall be administered in accordance with the Arkansas Tax Procedure Act, § 26-18-101 et seq. (b) The Secretary of the Department of Finance and Administration shall make and prescribe such rules and forms as he or she deems necessary to administer this subchap…

(a) A claim center making a payment of lottery winnings on a single lottery ticket of more than five thousand dollars ($5,000) shall deduct and withhold an amount equal to seven percent (7%) of each payment of the lottery winnings. (b) The amount deducted and withheld under this …

(a) A claim center shall register to withhold income tax under § 26-51-2304 from lottery winnings in the manner prescribed by the Secretary of the Department of Finance and Administration. (b) The withholding account used to report and remit the withholding on wages shall not be …

(a) (1) The Office of the Arkansas Lottery is liable for amounts required to be deducted and withheld by a claim center under this subchapter regardless of whether the amounts were in fact deducted or withheld.(2) Any sum withheld in accordance with this subchapter is deemed to b…

This subchapter shall be known and may be cited as the “Arkansas Central Business Improvement District Rehabilitation and Development Investment Tax Credit Act”.