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003.19.3-X. Issuance of Tax Incentive

AR ADC 003.19.3-XArkansas 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-X
003.19.3-X. Issuance of Tax Incentive
Currentness
(A) If the production company has opted to receive the incentive as a rebate:
(i) Within ten (10) working days after the receipt of the certification from the Revenue Division, the Secretary of DF&A shall issue the rebate to:
(a) The production company;
(b) At the option of the production company, the full amount or a specified amount noted by the production company to:
1. The National Film Preservation Foundation;
2. Motion Picture Retirement Fund; or
3. Digital Product and Motion Picture Office Fund.
(ii) The amount of the rebate is limited to the amount specified in the approved financial incentive agreement;
(iii) Rebates to be awarded from the Digital Product and Motion Picture Office Fund may be payable from any source of funds allocated for their rebates.
(B) If the production company has opted to receive the incentive as a tax credit:
(i) Within ten (10) business days after the receipt of the certification from the Revenue Division, the Secretary of DF&A shall instruct the division to issue a tax credit certificate to the production company in the amount certified.
(ii) Tax credits issued:
1. Shall be issued promptly after the division completes its review of documents provided as listed in Section IX of this rule;
2. Are allowed as a credit against the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq;
3. Are not refundable; and
4. May be carried forward in part or in whole for five (5) consecutive taxable years to apply against the taxpayer's income taxes due.
5. May be transferred, sold, or assigned by the owner in whole or in part under A.C.A. § 15-4-2012.
(iii) The amount of the tax credits issued shall not exceed the amount approved by the Commission in the financial incentive agreement.
(iv) The Commission shall not approve applications for tax credits under this program for more than four million dollars ($4,000,000) in any (1) fiscal year.
(v) A taxpayer must attach the tax credit certificate to their income tax return in order to claim the credit.

Credits

Adopted 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-X, AR ADC 003.19.3-X
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