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003.19.3-XI. Transfer of Tax Credit Earned

AR ADC 003.19.3-XIArkansas 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-XI
003.19.3-XI. Transfer of Tax Credit Earned
Currentness
(A)(i) An owner of a tax credit earned under the Digital Products and Motion Picture Industry Development Act may transfer, sell, or assign some or all of the amount of the tax credit certified as outlined at A.C.A. ยง 15-4-2013.
(ii) A subsequent holder of some or all the amount of the tax credit may transfer, sell, or assign some or all of the remaining tax credit.
(B) A transferee from an original, approved applicant may use the tax credit earned under this program only to the extent the tax credit is available to and has not been previously used by the transferor.
(C) If a transferee of a tax credit earned under this program seeks to use the tax credit, they shall obtain and attach to their income tax return for the years the tax credit is claimed a certified statement from the transferor stating the:
(i) Name and address of the original purchaser and all transferees;
(ii) Tax identification number of all persons entitled to any portion of the original tax credit;
(iii) Original date the tax credit was approved;
(iv) Amount of the tax credit that was transferred; and
(v) Remaining amount of the tax credit that is available for use by the transferee.
(D) The amount of the tax credit received by the transferee may be carried forward in whole or in part for five (5) consecutive taxable years, beginning from the taxable year in which the tax credit originated, to apply against the taxpayer's income taxes due.
(E) If any subsequent audits or adjustments are made to a tax credit issued under this program that reduce the amount of the tax credit, the transferor that originally received the tax credit shall refund the difference between the original amount and the reduced amount to DF&A.
(F) If an owner or holder assigns some or all of a tax credit earned under this program, the owner shall:
(i) Notify DF&A in writing within thirty (30) calendar days following the effective date of the transfer; and
(ii) Provide any information DF&A requires to administer and carry out the transfer and ensure proper tracking of the ownership of the unused tax 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-XI, AR ADC 003.19.3-XI
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