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003.19.2-VI. Issuance of Tax Credit

AR ADC 003.19.2-VIArkansas Administrative CodeEffective: June 29, 2020

West's Arkansas Administrative Code
Title 003. Department of Commerce
Division 19. Economic Development Commission
Rule 2. Equity Investment Incentive Act of 2007 Rules
Effective: June 29, 2020
Ark. Admin. Code 003.19.2-VI
Formerly cited as AR ADC 168.00.10-VI
003.19.2-VI. Issuance of Tax Credit
Currentness
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 shall provide the following documentation to the Arkansas Economic Development Commission:
1. The name and address of the original purchaser(s);
2. The tax identification number(s) of the person(s) entitled to the credit;
3. The original date of the qualified transaction;
4. The number and type of equity investment purchased;
5. The amount paid by the original purchaser for the equity interest or convertible debt instrument;
6. The amount of dividends and distributions previously paid by the business to the purchaser;
7. Articles of Incorporation;
8. Certificate of Good Standing;
9. Subscription Agreement for equity purchase or a Purchase Agreement detailing a convertible debt structure, terms, and conversion event; and
10. Proof of transfer of funds documenting the investor as the source of funds and the company as the recipient.
The Arkansas Economic Development Commission will issue a certificate of tax credit that must be attached to the income tax return on which the credit is first claimed.
Issuance of credit to a pass-through entity shall be according to each member's proportional ownership interest of the pass through entity.

Credits

Amended Sept. 21, 2011; Oct. 5, 2015; June 29, 2020.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 003.19.2-VI, AR ADC 003.19.2-VI
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