2015 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 51 - Income Taxes
Subchapter 3 - Exemptions and Reduced Tax Rates
§ 26-51-312 - Qualified windmill blade and windmill component manufacturing exemption.

(a) A qualified windmill blade or windmill component manufacturer that meets the criteria under this section is eligible for a limited exemption from the income taxes levied under the Income Tax Act of 1929, § 26-51-101 et seq.

(b) To qualify for a limited exemption under this section from income taxes, a windmill blade or windmill component manufacturer shall:

(1) Be classified in the North American Industrial Classification System (NAICS) Code 333611 as in effect January 1, 2009;

(2) Locate in the state after January 1, 2008; and

(3) Sign a financial incentive agreement with the Arkansas Economic Development Commission after January 1, 2008.

(c) The limited income tax exemption allowed under this section is calculated based on the formula in subsection (d) of this section that comprises the following variables:

(1) Investment;

(2) Job creation;

(3) Tier status; and

(4) Wages.

(d) The number of years that a limited income tax exemption is granted to a qualified windmill blade or windmill component manufacturer is calculated as follows:

(1) Divide the proposed number of jobs to be created by one thousand (1,000);

(2) (A) Multiply the number calculated under subdivision (d)(1) of this section by thirty-five hundredths (0.35).

(B) The number calculated under subdivision (d)(2)(A) of this section is the weighting factor for job creation under subdivision (c)(2) of this section;

(3) Divide the proposed hourly wage by the lesser of the state or county average wage;

(4) (A) Multiply the number calculated under subdivision (d)(3) of this section by thirty-five hundredths (0.35).

(B) The number calculated under subdivision (d)(4)(A) of this section is the weighting factor for wages under subdivision (c)(4) of this section;

(5) Divide the proposed investment amount by one hundred fifty million dollars ($150,000,000);

(6) (A) Multiply the number calculated under subdivision (d)(5) of this section by twenty hundredths (0.20).

(B) The number calculated under subdivision (d)(6)(A) of this section is the weighting factor for investment under subdivision (c)(1) of this section;

(7) Divide the tier number of the county in which the business locates by four (4);

(8) (A) Multiply the number calculated under subdivision (d)(7) of this section by ten hundredths (0.10).

(B) The number calculated under subdivision (d)(8)(A) of this section is the weighting factor for tier status that is associated with location under subdivision (c)(3) of this section;

(9) Take the sum of the numbers in subdivisions (d)(2)(A), (d)(4)(A), (d)(6)(A), and (d)(8)(A) of this section and multiply the sum by twenty-five (25); and

(10) The number calculated in subdivision (d)(9) of this section is the number of years of income tax exemption granted to the qualified windmill blade or windmill component manufacturer.

(e) If a qualified windmill blade or windmill component manufacturer that signs a financial incentive agreement with the commission after January 1, 2008, has employed a minimum of one thousand (1,000) persons during the last year of the income tax exemption provided for in the initial signed financial incentive agreement with the commission, then additional years of income tax exemption may be authorized by the commission.

(f) An income tax exemption allowed by this section shall not exceed twenty-five (25) years from the year that the exemption is first granted.