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Arkansas Code Title 26. Taxation § 26-51-1508. Development, operation, and tax credits

Current as of March 28, 2024 | Updated by Findlaw Staff

(a)(1) All projects must be completed and properly functioning within three (3) years of the date of the certificate of tax credit approval, except if the Department of Agriculture determines that failure to comply with this subdivision (a)(1) is the result of conditions beyond the control of the taxpayer, an additional year to comply with this subdivision (a)(1) may be granted by the Department of Agriculture.

(2) If the taxpayer does not complete the project within the period provided in subdivision (a)(1) of this section, all credits claimed must be repaid to the Revenue Division of the Department of Finance and Administration, and the project will be disallowed as a project for tax credit purposes.

(b)(1) Project activities shall meet or exceed those standards as established by the Department of Agriculture, and the project must be maintained for a minimum life of ten (10) years after it is certified as being complete.

(2)(A) If the taxpayer terminates the project prior to expiration of the minimum project life, the taxpayer shall provide written notification to the Department of Agriculture and the division.

(B) In addition, the taxpayer shall file an amended tax return and repay the amount of tax credit claimed which was not allowable.

(3) If the Department of Agriculture determines that the taxpayer has terminated the project, it shall notify the division.

(4)(A) Upon the termination of the project, the taxpayer shall not be allowed any further tax credits provided in this subchapter and the division shall recapture the pro rata share of any tax credits claimed under this subchapter for the period of termination.

(B) The pro rata share for recapture of the disallowed tax credits shall be determined by dividing the period of time from termination of the project until the expiration of the minimum life of the project by the required minimum life of the project times the tax credit claimed.

(C) Notwithstanding the provisions of § 26-18-306, the division may make necessary assessments to recapture disallowed tax credits for a period of three (3) years from the date of expiration of the minimum life of the project.

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Cite this article: FindLaw.com - Arkansas Code Title 26. Taxation § 26-51-1508. Development, operation, and tax credits - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-26-taxation/ar-code-sect-26-51-1508/

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