Arkansas Code Title 26. Taxation § 26-65-103. Pass-through entity tax

(2) If the tax levied under subdivision (b)(1) of this section results in a net operating loss for an affected business entity, the affected business entity may carry forward the net operating loss in the same manner and for the same number of years as provided under § 26-51-427.

(3) An affected business entity that is a member of another affected business entity shall subtract its distributive share of the income or add its distributive share of the loss from the other affected business entity to the extent that the income or loss was derived from or connected with sources within this state.

(4) A nonresident individual who is a member of an affected business entity is not required to file an individual income tax return if, for the taxable year, the only source of income derived from or connected with sources within this state for the member or, if a joint income tax return is filed, the member and his or her spouse, is from one (1) or more affected business entities and each affected business entity files and pays the taxes due under this section.

(5) An affected business entity that files a return in Arkansas and has income from both within and without Arkansas shall apportion income to Arkansas under the Uniform Division of Income for Tax Purposes Act, § 26-51-701 et seq.

(6) An affected business entity that receives or earns a tax credit to be applied against the income tax imposed under Chapter 51 of this title may instead elect to apply the tax credit to reduce the tax imposed under this chapter, subject to any limitations applicable to the tax credit.