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003.19.3-V. Production Tax Incentive

AR ADC 003.19.3-VArkansas Administrative CodeEffective: May 2, 2022

West's Arkansas Administrative Code
Title 003. Department of Commerce
Division 19. Economic Development Commission
Rule 3. Digital Product and Motion Picture Industry Development Act (Act 816 of 2009, as Amended) Rules
Effective: May 2, 2022
Ark. Admin. Code 003.19.3-V
Formerly cited as AR ADC 168.00.19-V
003.19.3-V. Production Tax Incentive
Currentness
To qualify for a tax incentive for post-production expenditures, a production company shall spend at least two hundred thousand dollars ($200,000) within a six-month period in connection with the production of one (1) project.
Upon approval of the application by the executive director, a production company may receive a discretionary tax incentive on all qualified production costs in connection with the production of a state-certified film project.
The amount of the tax incentive shall be twenty percent (20%) on all qualified production costs associated with the post-production of a state-certified film project.
If the executive director approves a project for a rebate or tax credit of qualified production costs, the production company shall also receive an additional rebate or tax credit of ten percent (10%) for:
(A) The payroll of below-the-line employees involved in the production who are:
(i) Full-time residents of Arkansas; or
(ii) Veterans;
(iii) If a production company hires a payroll service company to handle the payroll of a production company, the payroll payments and otherwise allowable shall be allowed an eligible expenditure if all eligible income payment to employees and independent contractors done through the payroll service are subject to Arkansas state income taxes.
(iv) If approved by the executive director, the employment incentive shall include the first five hundred thousand dollars ($500,000) of a highly compensated individual's salary.
(B) Expenditures paid to a veteran-owned small business for qualified production costs.
To receive the enhanced ten percent (10%) incentive, a production company must provide to the Film Office the following completed forms for each individual or business that qualify:
• Declaration of Arkansas Residency form provided by the Commission;
• Declaration of Veteran Status or Veteran-Owned Business Status form provided by the Commission.
A production tax incentive shall not be processed until the production company has met in full all obligations to each Arkansas institution and vendor owned for products and services in the state.

Credits

Adopted Aug. 21, 2009. Amended June 29, 2020; May 2, 2022.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 003.19.3-V, AR ADC 003.19.3-V
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