§ 26-51-1102 - Credit granted. - Arkansas Statutes

26-51-1102. Credit granted.

(a) (1) There is granted a credit against a taxpayer's Arkansas corporate income tax or Arkansas individual income tax for donations by any taxpayer of new machinery or equipment and for sales below cost of machinery and equipment by taxpayers to qualified educational institutions in connection with a qualified education program or a qualified research program.

(2) The amount of the credit granted by this section shall be:

(A) In the case of a donation, thirty-three percent (33%) of the cost of the machinery and equipment donated; and

(B) In the case of a sale below cost, thirty-three (33%) of the amount by which the cost is reduced.

(b) There is granted a credit against a taxpayer's Arkansas corporate income tax or Arkansas individual income tax equal to thirty-three percent (33%) of the qualified research expenditures of a taxpayer in qualified research programs.

(c) (1) There is granted a credit against a taxpayer's Arkansas corporate income tax or Arkansas individual income tax equal to thirty-three percent (33%) of a donation made to an accredited institution of higher education to support a research park authority.

(2) In order to claim this credit authorized by subdivision (c)(1) of this section, a donation made in support of a research park authority shall:

(A) Be consistent with the research and development plan approved by the Board of Directors of the Arkansas Science and Technology Authority, as evidenced by a letter of support from the President of the Arkansas Science and Technology Authority; and

(B) Support either directly or indirectly research subject to being funded by one (1) or more federal agencies, as enumerated in 15-3-205(1).