Title 26, Taxation

(a) Nonresidents or part-year residents of Arkansas shall compute their taxable income as if all income were earned in Arkansas. (b) Using Arkansas income tax rates, nonresident or part-year residents of Arkansas shall compute their tax liability on the amount computed in subsect…

(1) Notwithstanding any other provision of the Income Tax Act of 1929, § 26-51-101 et seq., with regard to deductions allowed in computing net income:(1) Title 26 U.S.C. § 465, as in effect on January 1, 1987, is adopted to limit deductions claimed under the Income Tax Act of 192…

(a) In the case of an individual, the miscellaneous itemized deductions for any taxable year shall be allowed only to the extent that the aggregate of those deductions exceeds two percent (2%) of adjusted gross income. (b) As used in this section, “miscellaneous itemized deductio…

(a) Title 26 U.S.C. § 263A(a)-(h), as in effect on January 1, 2019, regarding capitalization and inclusion in inventory costs of certain expenses, are adopted for the purpose of computing Arkansas income tax liability. (b) Title 26 U.S.C. § 195, as in effect on January 1, 2001, r…

(a) (1) Subchapter M of the Internal Revenue Code, 26 U.S.C. § 851 et seq., as in effect on January 1, 2019, relating to regulated investment companies, real estate investment trusts, real estate mortgage investment conduits, and financial asset securitization investment trusts, …

Title 26 U.S.C. § 1043, as in effect on January 1, 1993, is hereby adopted.

(a) Title 26 U.S.C. § 483, as in effect on January 1, 1999, regarding the allocation of unstated interest, is adopted for the purpose of computing Arkansas income tax liability. (b) Title 26 U.S.C. § 7872, as in effect on January 1, 2019, regarding the taxation of foregone intere…

Title 26 U.S.C. § 175, as in effect on January 1, 1995, regarding the deduction of certain expenditures related to soil and water conservation is hereby adopted.

(a) Title 26 U.S.C. § 23, as in effect on January 2, 2013, and 26 U.S.C. § 36C, as in effect on January 2, 2013, are adopted for purposes of determining the allowable credit for adoption-related fees, costs, and expenses paid or incurred by a taxpayer. (b) (1) The amount of credi…

(a) (1) All distributions of funds other than principal from the long-term intergenerational trust shall be taxable as provided in the Income Tax Act of 1929, § 26-51-101 et seq. (2) All distributions from the long-term intergenerational trust shall be deemed principal until all …

(a) In computing net income for the purposes of the Income Tax Act of 1929, § 26-51-101 et seq., there shall be allowed as a deduction in addition to all other deductions allowed by law for a portion of the amount paid by the taxpayer as tuition for the taxpayer, the taxpayer's s…

(a) Title 26 U.S.C. § 530, as in effect on January 2, 2013, relating to educational individual retirement accounts, is adopted for the purpose of computing Arkansas income tax liability. (b) Any additional tax or penalty imposed by this section shall be ten percent (10%) of the a…

(a) In computing net income, there shall be allowed as a deduction the amount paid during a taxable year to the United States Small Business Administration as a guaranty fee associated with the acquisition of United States Small Business Administration financing. (b) The deductio…

(a) Title 26 U.S.C. § 223(a)-(d), (e)(2), (f), and (g), as in effect on January 1, 2011, regarding a deduction from income for amounts deposited to health savings accounts, is adopted for purposes of computing Arkansas income tax liability. (b) A health savings account is exempt …

(a) Title 26 U.S.C. § 1341(a)(1)-(3) and (b)(2), as they existed on January 1, 2013, regarding the computation of income tax when a taxpayer restores a substantial amount held under a claim of right, is adopted for purposes of computing income tax liability under this chapter. (b…

(a) In computing net income for the purposes of the Income Tax Act of 1929, § 26-51-101 et seq., there is allowed as a deduction in addition to all other deductions allowed by law for the:(1) Amount paid by a volunteer firefighter and not reimbursed by the fire department or fire…

(a) As used in this section:(1) “Qualified classroom investment expense” means the amount expended by a teacher during the tax year for materials used in the classroom, including without limitation the following:(A) Books;(B) School supplies;(C) Computer equipment and software;(D…

(a) Except as provided in subsection (b) of this section, 26 U.S.C. § 1400Z-2, as in effect on January 1, 2018, regarding opportunity zones, is adopted for the purpose of computing Arkansas income tax liability. (b) As used in this section and for purposes of the adoption of 26 U…

Title 26 U.S.C. §§ 174 and 280C, as in effect on January 1, 2019, concerning the deduction of research and development costs, are adopted for the purpose of computing Arkansas income tax liability.

(a) There shall be deducted from the tax after the tax has been computed as set forth in the Income Tax Act of 1929, § 26-51-101 et seq., a personal tax credit as follows:(1) (A) For a single individual, the adjusted individual credit.(B) However, a taxpayer who was blind or deaf…

(a) A credit shall be allowed to individuals against the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., for expenses for household and dependent care services necessary for gainful employment in the manner prescribed by subsection (b) of this section. (b) …

(a) In addition to the state income tax credit permitted by § 26-51-501(a) and (b), any taxpayer in this state who is maintaining, supporting, and caring for an individual with a diagnosis of a developmental disability in the taxpayer's home is permitted, in addition to all other…

(a) (1) (A) For the purpose of ascertaining the income tax due by an individual resident of Arkansas whose gross income includes income derived from property located outside the State of Arkansas, or from business transacted outside the State of Arkansas, the tax shall first be c…

(a) There shall be allowed a credit against the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., § 26-51-205, and § 26-51-303, an amount as determined in subsection (c) of this section, for any taxpayer who establishes or expands a manufacturing enterprise in the S…

(a) The intent and purpose of this section is to increase capacity in the State of Arkansas for the use of recovered materials. (b) As used in this section:(1) “Cost”, in the case of a transfer of title or a finance lease, means the amount of the purchase price, and, in the case …

(a) A business which qualifies for the exemption from the gross receipts tax under former § 26-52-401(29) shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of employees employed exclusively in providing childcare services. (b) If t…

(a) A business which qualifies for the refund of the gross receipts tax or compensating use tax under § 26-52-516 or § 26-53-132 shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of its employees employed exclusively in providing c…

(a) As used in this section, “apprentice” means a worker who is at least sixteen (16) years of age and is employed:(1) To learn an apprenticeable occupation under 29 C.F.R. § 29.1 et seq., as it existed on January 1, 1995; or(2) In an apprenticeship or work-based learning program…

(a) As used in this section:(1) “Coal mining enterprise” means:(A) An Arkansas taxpayer primarily engaged in surface or highwall mining, producing, or extracting coal in Arkansas; and(B) A holder of a valid mining permit issued by the Division of Environmental Quality to allow su…

(a) As used in this section:(1) “End user” means a person who purchases and uses rice straw for processing, manufacturing, generating energy, or producing ethanol; and(2) “Rice straw” means the dry stems of rice left after the seed heads have been removed. (1) “End user” means a …

(a) In addition to any income tax credit not related to the same eligible property for which a taxpayer qualifies, the taxpayer is allowed an income tax credit for the amount of the Arkansas historic rehabilitation income tax credit allowed by the certification of completion issu…

(a) (1) Subject to the restrictions stated in this section, there is allowed an income tax credit against the income tax imposed under this chapter for up to three thousand five hundred dollars ($3,500) for work performed by the taxpayer on behalf of the Division of Arkansas Stat…

(a) This section shall be known and may be cited as “Paisley's Law”. (b) There is allowed an income tax credit against the income tax imposed by this chapter in the amount of five hundred dollars ($500) for a stillborn child:(1) Who was in gestation for twenty (20) weeks or more;…

(a) There is allowed an income tax credit against the income tax imposed by this chapter in the amount stated in subsection (b) of this section for the cost of making capital improvements to a facility or property related to using water transportation in the state, including with…

(a) As used in this Act, unless the context otherwise requires:(a) “Apportionable income” means:(1) All income that is apportionable under the United States Constitution and is not allocated under the laws of this state, including:(A) income arising from transactions and activity…

Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a railroad or public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in thi…

For purposes of allocation and apportionment of income under this Act, a taxpayer is taxable in another state if (1) in that state the taxpayer is subject to a net income tax, a franchise tax measured by net income, or any other tax measured by income or other measure of business…

Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonapportionable income, shall be allocated as provided in §§ 26-51-705 — 26-51-708.

(a) Net rents and royalties from real property located in this state are allocable to this state. (b) Net rents and royalties from tangible personal property are allocable to this state:(1) if and to the extent that the property is utilized in this state, or(2) in their entirety …

(a) Capital gains and losses from sales of real property located in this state are allocable to this state. (b) Capital gains and losses from sales of tangible personal property are allocable to this state if:(1) the property had a situs in this state at the time of the sale, or(…

Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.

(a) Patent and copyright royalties are allocable to this state:(1) if and to the extent that the patent or copyright is utilized by the payer in this state, or(2) if and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not ta…

All apportionable income shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the total receipts of the taxpayer in this state during the tax period and the denominator of which is the total receipts of the taxpayer everywhere duri…

(a) Receipts from sales of tangible personal property are in this state if:(a) the property is delivered or shipped to a purchaser within this state regardless of the f.o.b. point or other conditions of the sale; or(b) the property is shipped from an office, store, warehouse, fac…

(a) Receipts, other than receipts of sales of tangible personal property, are in this state if the taxpayer's market for the sales is in this state. The taxpayer's market for sales is in this state:(1) in the case of sale, rental, lease, or license of real property, if and to the…

(a) If the allocation and apportionment provisions of this Act do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the Secretary of the Department of Finance and Administration may require, in respect to all or an…