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006.05.204-1. DEFINITIONS.

AR ADC 006.05.204-1Arkansas Administrative Code

West's Arkansas Administrative Code
Title 006. Department of Finance and Administration
Division 05. Division of Revenues
Rule 204. 1993-11 Enterprise Zone Act of 1993
Ark. Admin. Code 006.05.204-1
006.05.204-1. DEFINITIONS.
(1) ‘Act’ means the Arkansas Enterprise Zone Act of 1993;
(2) ‘Approved Enterprise Zone Business' means a business which has been approved by the Department to receive benefits under the Act;
(3) ‘Average hourly wage’ means the average wage of the net new permanent employees based on payroll for the most recent quarter reported to the Employment Security Division, and is computed by using the total of the net new permanent employees' reported taxable earnings, including overtime pay, divided by the number of weeks worked, divided by the average hours worked per week per net new permanent employee; Salaried employees are deemed to have worked forty (40) hours per week for the purpose of calculating ‘average hourly wage’ and ‘most recent quarter reported’ in the tax year during which the income tax credits were earned;
(4) ‘Chief Fiscal Officer of the State’ means the Director of the Department of Finance and Administration;
(5) ‘Commission’ means the Arkansas Industrial Development Commission;
(6) ‘Corporate headquarters' means the home or center of operations, including research and development, of a national or multi-national corporation;
(7) ‘Department’ means the Department of Industrial Development;
(8) ‘Director’ is the director of the department;
(9) ‘Governing authority’ means the quorum court of a county or the governing body of a municipality;
(10) ‘New permanent employee’ means a employee who is an Arkansas resident when hired and who was hired as a result of the project and has worked an average of at least thirty (30) hours per week for at least twenty-six (26) consecutive weeks. To be counted as a new permanent employee for the purpose of qualifying for the tax credits and incentives, the employee must have been an Arkansas resident during the tax year in which the tax credits or incentives were earned.
(11) ‘Net new permanent employee’ means a new permanent employee who was not employed by the taxpayer during the preceding tax year. However, if during the tax year in which a new permanent employee was hired the employee did not work the requisite number of weeks to qualify as a new permanent employee for that tax year, then that employee may be counted as a net new permanent employee for the tax year in which he or she meets the requirement. Example: An employee hired August 1, 1993 could not qualify as a new permanent employee for 1993 because he could not have worked 26 consecutive weeks in 1993. However, if in 1994 that employee completes his 26th consecutive week of work with an average of 30 hours of work per week since the date he was hired, that employee will qualify as a net new permanent employee for the 1994 tax year. The number of net new permanent employees shall be equal to the total number of new permanent employees for the current tax year minus the total number of new permanent employees for the previous tax year.
(12) ‘Office sector business' means control centers that influence the environment in which data processing, customer service, credit accounting, telemarketing, claims processing, and other administrative functions that act as production centers. Also referred to as “back office industry”;
(13) ‘Program’ means the Arkansas Enterprise Zone Act of 1993;
(14) ‘Project’ means:
(A) All activities and costs associated with the construction of a new plant or facility; or
(B) The expansion of an established plant or facility by adding to the building or production equipment or support infrastructure, or both; or
(C) The replacement of production or processing equipment or support infrastructure, or both;
(15) “Tax year” means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which taxable income is computed. In the case of a return made for a fractional part of a year, “tax year” means the period for which such return is made.
(16) “Trucking sector business” means a business that comes within the Standard Industrial Classification (SIC) number 4231;
(17) “Standard Industrial Classification Numbers” means the numbers used to classify businesses in the STANDARD INDUSTRIAL CLASSIFICATION MANUAL published by the Office of Management and Budget, Executive Office of the President.
Current with amendments received through May 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.204-1, AR ADC 006.05.204-1
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