§ 26-51-509 - Youth apprenticeship program. - Arkansas Statutes

26-51-509. Youth apprenticeship program.

(a) For the purposes of this section:

(1) "Bureau" means the Bureau of Apprenticeship and Training of the United States Department of Labor;

(2) "Department" means the Department of Finance and Administration; and

(3) "Youth apprentice" means an individual between the ages of sixteen (16) and twenty-one (21) years who is enrolled in a public or private secondary or postsecondary school.

(b) (1) A taxpayer who employs a youth apprentice in a registered apprenticeship program as provided in Title 29, Subtitle (a), Part 29 of the Code of Federal Regulations, as in effect on January 1, 1995, shall be allowed a credit in the amount of two thousand dollars ($2,000) or ten percent (10%) of the wages earned by the youth apprentice, whichever is less, against the tax imposed by the Arkansas Income Tax Act of 1929, as amended, 26-51-101 et seq., for each such apprentice.

(2) (A) A partner's or member's distributive share of the credit shall be determined by the partnership or limited liability company agreement, unless the agreement does not have substantial economic effect or does not provide for the allocation of credits.

(B) If the agreement does not have substantial economic effect or does not provide for the allocation of the credit, the credit shall be allocated according to the partner's or member's interest in the partnership, pursuant to federal Internal Revenue Code section 704(b), as in effect on January 1, 1995.

(c) (1) To claim the benefits of this section, a taxpayer must obtain a certification from the bureau certifying to the Revenue Division of the Department of Finance and Administration that the taxpayer has met all the requirements and qualifications set forth in this section.

(2) The certification to the department shall include the total amount of wages paid to each youth apprentice employed by the taxpayer or 501(c)(3) corporation in the taxable year for which the taxpayer claims the credit provided in this section.

(d) (1) The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of individual or corporate income tax otherwise due.

(2) Any unused credit may be carried over for a maximum of two (2) consecutive taxable years.

(e) If the business is an "S" corporation, the pass-through provisions of 26-51-409, as in effect for the taxable year the credit is earned, shall be applicable.

(f) A taxpayer who trains a youth apprentice in a registered youth apprenticeship program as provided in subsection (b) of this section shall be entitled to the tax credit provided in this section for such youth apprentice, even though the apprentice receives his or her wages for such training from a 501(c)(3) corporation.

(g) (1) The Revenue Division of the Department of Finance and Administration shall promulgate such rules and regulations as may be deemed necessary to carry out the purposes of this section.

(2) The Revenue Division shall consult with the Bureau of Apprenticeship and Training of the United States Department of Labor during the promulgation of the rules and regulations.