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Arkansas Code Title 26. Taxation § 26-51-517. Waterways investment tax credit

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

(a) There is allowed an income tax credit against the income tax imposed by this chapter in the amount stated in subsection (b) of this section for the cost of making capital improvements to a facility or property related to using water transportation in the state, including without limitation the construction, improvement, capital facility rehabilitation, and expansion of a waterway facility and the construction or improvement of rail or road access to a waterway facility, on or after January 1, 2024, and on or before December 31, 2025.

(b)(1) Except as otherwise provided in this subsection, the tax credit allowed under subsection (a) of this section shall not exceed three million dollars ($3,000,000) for a taxpayer that makes the capital improvements to a facility or property related to using water transportation in the state.

(2) The amount of the tax credit that a taxpayer may claim each year is limited to a maximum of ten percent (10%) of the total tax credit for which the taxpayer is eligible.

(3) The total cumulative amount of tax credits for all taxpayers under this section in a tax year shall:

(A) Not exceed two million five hundred thousand dollars ($2,500,000); and

(B) Be issued on a first-come, first served basis.

(4) A tax credit allowed under this section shall be issued only after the Secretary of the Department of Commerce has determined, based on the information provided by the applicant for a tax credit under this section, that the taxpayer's capital investment in a facility or property related to using water transportation in the state will provide an economic benefit to the state that will likely be equal to or greater than the amount of the tax credit allowed under this section.

(c) Any unused income tax credit that cannot be claimed in a tax year because of the limit stated in subdivision (b)(2) of this section may be carried forward for nine (9) consecutive tax years following the tax year in which the income tax credit was earned.

(d) A taxpayer is not eligible for the credit allowed under this section if the taxpayer has received funds under the Arkansas Port, Intermodal, and Waterway Development Grant Program.

(e) The Secretary of the Department of Finance and Administration shall:

(1) Promulgate rules to implement this section;

(2) Review the overall economic impact of this section on or before December 31, 2030, and again on or before December 31, 2035; and

(3) Report his or her findings under subdivision (e)(2) of this section to the Legislative Council or, if the General Assembly is in session, to the Joint Budget Committee within thirty (30) days of completing the required review.

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Cite this article: FindLaw.com - Arkansas Code Title 26. Taxation § 26-51-517. Waterways investment tax credit - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-26-taxation/ar-code-sect-26-51-517/

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