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006.05.308-15-4-1224. COUNTY AND REGIONAL INDUSTRIAL DEVELOPMENT CORPORATION ACT

AR ADC 006.05.308-15-4-1224Arkansas Administrative Code

West's Arkansas Administrative Code
Title 006. Department of Finance and Administration
Division 05. Division of Revenues
Rule 308. Comprehensive Corporation Income Tax Regulations (Refs & Annos)
Ark. Admin. Code 006.05.308-15-4-1224
006.05.308-15-4-1224. COUNTY AND REGIONAL INDUSTRIAL DEVELOPMENT CORPORATION ACT
Currentness
1.15-4-1224 Income Tax Credit
The original purchaser of common stock in a County or Regional Industrial Development Corporation shall be entitled to a credit against any Arkansas income tax liability that the purchaser may have. The credit shall be determined as follows:
Example:
Purchase price
$1,000,000
Credit allowed is
33% of the purchase price of the common stock
$ 330,000
Tax year
1991
1992
1993
Tax liability
20,000
50,000
80,000
Credit allowed (50% of tax liability)
10,000
25,000
40,000
2.15-4-1224 Gain or Loss Upon Sale or Disposition of Common Stock
The basis for computation of gain or loss upon the sale of the common stock in a County or Regional Industrial Development Corporation shall be reduced by the amount of the income tax credits previously deducted. The basis shall be further reduced by ten percent (10%) of the original purchase price if the stock is disposed of within five years (5) of its original purchase date.
Example:
Stock purchased in 1991, sold in 1994
Purchase price
$1,000,000
Less credit claimed
- 75,000
Less 10% of purchase price
-100,000
Basis of stock for Arkansas tax purposes
825,000
Selling price
1,500,000
Taxable gain
$ 675,000
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.308-15-4-1224, AR ADC 006.05.308-15-4-1224
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