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006.05.204-3. INCOME TAX CREDIT.

AR ADC 006.05.204-3Arkansas 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 006.05.204-3
006.05.204-3. INCOME TAX CREDIT.
(a) The Revenue Division of the Department of Finance and Administration shall authorize an income tax credit equal to one hundred (100) times the average hourly wage paid with a maximum of two thousand dollars ($2,000) per net new permanent employee of a business qualifying under subsection (b) of Section 2. This tax credit shall be used for the tax year in which the new permanent employee qualified as a net new permanent employee. However, if the entire credit cannot be used in the tax year earned, the remainder may be applied against the income tax for the succeeding four (4) tax years, or until the credit is entirely used, whichever occurs first. The credit allowed under this section shall increase by a factor of two (2) with a maximum credit of two thousand dollars ($2,000) if the business is located in a county that had an unemployment rate in excess of ten percent (10%) or in excess of three percent (3%) above the state's average unemployment rate for the preceding calendar year. The unemployment rates used will be those published by the Arkansas Employment Security Department.
(b)(1) An income tax credit as provided for in subsection (a) of this section shall be authorized provided that:
(A) The request for such credit is accompanied by an endorsement resolution approved by the governing body of the appropriate municipality or county in whose jurisdiction the establishment is to be located;
(B) All of the net new permanent employees are employed at the facility.
(2) In the event that any business receiving the benefits contained in subsection (a) of this section has failed to comply with the conditions contained in this subsection, that business shall be liable for the payment of such additional income taxes as may be due after the income tax credits provided for in subsection (a) are disallowed, plus penalty and interest. For example, if the business has not hired the minimum number of employees required by the Act within the time required, then the business shall be liable for the payment of the additional income taxes attributable to the credits taken, plus penalty and interest.
Current with amendments received through May 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.204-3, AR ADC 006.05.204-3
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