2015 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 51 - Income Taxes
Subchapter 10 - Water Resource Conservation and Development Incentives Act
§ 26-51-1011 - Development, operation, and tax credits.

(a) Project activities shall meet or exceed those standards as established by the Arkansas Natural Resources Commission, and the project must be maintained for a minimum life of ten (10) years after issuance of a certificate of completion.

(b) Project costs incurred after issuance of a tax credit approval certificate may be claimed for tax credit, subject to other limitations contained in this subchapter.

(c) (1) All projects must be completed within three (3) years of the date of the certificate of tax credit approval.

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

(d) (1) If the approved applicant terminates the project prior to expiration of the minimum project life, the approved applicant shall provide written notification to the commission and the department. In addition, the approved applicant shall file an amended tax return and repay the amount of tax credit claimed that was not allowable.

(2) If the commission determines that the approved applicant has terminated the project, it shall notify the department.

(e) (1) Upon the termination of a project, the approved applicant shall not be allowed any further tax credits provided in this subchapter, and the department shall recapture the pro rata share of any tax credits claimed under this subchapter for the period of termination.

(2) 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.

(f) Notwithstanding the provisions of § 26-18-306, the department 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.

(g) For purposes of this subchapter, the recordkeeping provisions of § 26-18-506 requiring an approved applicant to maintain records for six (6) years after a return is filed shall be extended to require the approved applicant claiming a credit under this subchapter to maintain the required records for the required minimum life of the project plus three (3) years.