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003.19.4-II. Definitions

AR ADC 003.19.4-IIArkansas Administrative CodeEffective: June 29, 2020

West's Arkansas Administrative Code
Title 003. Department of Commerce
Division 19. Economic Development Commission
Rule 4. Donations or Sales of Equipment to Educational Institutions Tax Credit Program Rules
Effective: June 29, 2020
Ark. Admin. Code 003.19.4-II
003.19.4-II. Definitions
Currentness
1. “Accredited institution of higher education” means a four-year public college or university that offers bachelor's degrees and is recognized by the Division of Higher Education for credit;
2. “Cost” means:
i. In the case of a donation or sale below cost by a wholesale or retail business, the amount actually paid by the wholesaler or retailer to the supplier for the machinery and equipment;
ii. In the case of a donation or sale below cost by a manufacturer of machinery and equipment, the enhanced value of the materials used to produce the machinery and equipment, which shall be deemed to be the lowest price at which the manufacturer sells the machinery and equipment; or
iii. In the case of a cash donation by a taxpayer to a qualified educational institution for the purchase of new machinery and equipment, the amount actually paid by the qualified educational institution to the wholesale, retail, or manufacturing business, as documented by itemized receipts;
3. “Financial incentive agreement” means an agreement between the Arkansas Economic Development Commission and a taxpayer outlining the terms and conditions of a tax credit awarded under these regulations;
4. “Machinery and equipment” means tangible personal property used in connection with a qualified education program or a qualified research program that has been approved for a tax credit under rules prescribed by the Department of Finance and Administration;
5. “New” means the machinery and equipment are state-of-the-art machinery and equipment that have:
i. Never been used except for normal testing by the manufacturer to ensure that the machinery or equipment is of a proper quality and in good working order; or
ii. Been used by the retailer or wholesaler solely for the purpose of demonstrating the product to customers for sale;
6. “Qualified education program” means a program conducted by a qualified educational institution under rules prescribed by the Division of Higher Education for programs in colleges, universities, or junior colleges, by the Division of Career and Technical Education for programs in vocational technical training schools and by the Division of Elementary and Secondary Education for programs in secondary schools, all of which programs are for the purpose of promoting the use of new machinery and equipment for classroom, laboratory, and other educational instruction;
7. “Qualified educational institution” means:
i. A public university, college, junior college, or vocational technical training school located in and supported by the State of Arkansas;
ii. A private university, college, junior college, or vocational technical training school located in Arkansas and qualified for tax-exempt status under the Income Tax Act of 1929, § 26-51-101 et seq.; and
iii. A public secondary school;
8. “Qualified research expenditures” means the sum of any amounts that are paid or incurred by a taxpayer during the taxable year in funding a qualified research program that has been approved for tax credit treatment under rules promulgated by the Department of Finance and Administration;
9. “Qualified research program” means a program of applied or basic research undertaken by a qualified educational institution that applies the findings of the research or other existing knowledge toward discovering new scientific knowledge that has specific commercial objectives with respect to new products, services, processes, or methods;
10. “Research park authority” means a public entity created under the Research Park Authority Act, § 14-144-101 et seq., to provide facilities and support for businesses engaged in research and development in pursuit of economic development opportunities; and
11. “State-of-the-art-machinery and equipment” means machinery and equipment that are of the same type, design, and capability as like machinery and equipment that are currently sold or manufactured by the donee for sale to customers.

Credits

Adopted June 29, 2020.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 003.19.4-II, AR ADC 003.19.4-II
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