§ 26-51-1011 - Development, operation, and tax credits. - Arkansas Statutes

26-51-1011. Development, operation, and tax credits.

(a) Project activities shall meet or exceed those standards as established by the 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 taxpayer does not complete the project within the period provided in subdivision (c)(1) of this section, all credits claimed must be repaid to the department, and the project will be disallowed as a project for tax credit purposes.

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

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

(e) (1) Upon the termination of a project, the taxpayer 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 a taxpayer to maintain records for six (6) years after a return is filed shall be extended to require the taxpayer claiming a credit under this subchapter to maintain the required records for the required minimum life of the project plus three (3) years.