2015 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 58 - Severance Taxes
Subchapter 2 - Tax Credits for Certain Oil and Gas Producers
§ 26-58-208 - Amounts of credits or tax -- Maximum annual credits allowed.

(a) A producer is entitled to an annual severance tax credit that is calculated based upon the cost, as defined in § 26-58-209, of the producer in maintaining an approved underground saltwater disposal system during the calendar year for which the severance tax credit is approved.

(b) (1) The total severance tax credits allowed all oil producers for any calendar year shall not exceed three hundred seventy thousand dollars ($370,000).

(2) If for any calendar year the total severance tax credits of all oil producers operating, utilizing, or maintaining approved underground saltwater disposal systems exceed the total maximum allowable severance tax credits provided in subdivision (b)(1) of this section, the Director of the Department of Finance and Administration shall prorate the allowable severance tax credits among the respective oil producers in the proportion that the severance tax credits due each oil producer bear to the total of all severance tax credits due all qualifying oil producers.

(c) (1) The total severance tax credits allowed all natural gas producers for any calendar year shall not exceed three hundred seventy thousand dollars ($370,000).

(2) If for any calendar year the total severance tax credits of all natural gas producers operating, utilizing, or maintaining approved underground saltwater disposal systems exceed the total maximum allowable severance tax credits provided in subdivision (c)(1) of this section, the director shall prorate the allowable severance tax credits among the respective natural gas producers in the proportion that the severance tax credits due each natural gas producer bear to the total of all severance tax credits due all qualifying natural gas producers.

(d) (1) A claim for a severance tax credit shall be filed with the director on forms prescribed by the director on or before April 1 of the calendar year following the calendar year in which the costs of maintaining the underground saltwater disposal system were incurred.

(2) A severance tax credit is not allowed for any claim filed after April 1 of the calendar year following the calendar year in which the costs were incurred.

(e) The amount of the severance tax credit shall be paid to each qualifying and approved producer no later than June 1 of the calendar year following the calendar year in which the costs were incurred.

(f) Interest shall not accrue or be paid on a severance tax credit allowed under this subchapter.

(g) The director may promulgate rules to administer this section.