§ 26-51-1101 - Definitions. - Arkansas Statutes

26-51-1101. Definitions.

As used in this subchapter:

(1) "Accredited institution of higher education" means a four-year public college or university that offers bachelor's degrees and is recognized by the Department of Higher Education for credit;

(2) "Cost" means:

(A) In the case of a donation or sale below cost by a wholesale or retail business, the amount actually paid by the wholesaler or retailer to the supplier for the machinery or equipment; or

(B) In the case of a donation or sale below cost by a manufacturer of machinery or equipment, the enhanced value of the materials used to produce the machinery or equipment, which shall be deemed to be the lowest price at which the manufacturer sells the machinery or equipment;

(3) "Machinery and equipment" means tangible personal property used in connection with a qualified education program or a qualified research program that has been approved for a tax credit under rules and regulations prescribed by the Department of Finance and Administration;

(4) "New" means the machinery and equipment are state-of-the-art machinery and equipment that have:

(A) Never been used except for normal testing by the manufacturer to ensure that the machinery or equipment is of a proper quality and in good working order; or

(B) Been used by the retailer or wholesaler solely for the purpose of demonstrating the product to customers for sale;

(5) "Qualified education program" means a program conducted by a qualified educational institution under rules prescribed by the Department of Higher Education for programs in colleges, universities, or junior colleges, by the Department of Workforce Education for programs in vocational technical training schools and by the Department of Education for programs in elementary or secondary schools, all of which programs are for the purpose of promoting the use of new machinery and equipment for classroom, laboratory, and other educational instruction;

(6) "Qualified educational institution" means:

(A) Any public university, college, junior college, or vocational technical training school supported by the State of Arkansas;

(B) Any private university, college, junior college, or vocational technical training school located in Arkansas and qualified for tax-exempt status under the Income Tax Act of 1929, 26-51-101 et seq.; or

(C) Any public elementary or secondary school;

(7) "Qualified research expenditures" means the sum of any amounts that are paid or incurred by a taxpayer during the taxable year in funding a qualified research program that has been approved for tax credit treatment under rules promulgated by the Department of Finance and Administration;

(8) "Qualified research program" means a program of applied or basic research undertaken by a qualified educational institution pursuant to rules jointly prescribed by the Arkansas Science and Technology Authority and the Department of Higher Education under 15-3-110;

(9) "Research park authority" means a public entity created under the Research Park Authority Act, 14-144-101 et seq., to provide facilities and support for businesses engaged in research and development in pursuit of economic development opportunities; and

(10) "State-of-the-art-machinery and equipment" means machinery and equipment that is of the same type, design, and capability as like machinery and equipment that is currently sold or manufactured by the donee for sale to customers.