Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 15-4-1704 - ARKANSAS ENTERPRISE ZONE ACT
Rule 1.15-4-1704 - Income Tax Credits

Enterprise zone credits are issued and verified through the Department's Tax Credits/Special Refunds Section. Original certificates must be attached to the Corporation income tax return in order to claim the tax credits. The tax credits must be used for the tax year in which the increase in average annual employment occurred. The tax credits should be used to the full extent of the computed tax for the initial and succeeding tax years. Any unused credits may be carried forward for up to four (4) consecutive tax years following the tax year in which the credit originated if approved prior to 03/25/97 or for up to nine (9) consecutive tax years following the tax year in which the credit originated if approved on or after 03/25/97. If more than one (1) credit is involved, the taxpayer should specify in which order the credits should be claimed. If the taxpayer does not specify the order, the credits will be applied in the order which will be of best advantage to the taxpayer.

Regional headquarters and steel service centers (SIC 5051) may qualify for the tax incentive credits. These taxpayers must employ fifty (50) or more new permanent employees and must not make retail sales to the general public.

Under prior law, new employees were required to be Arkansas residents. The law now requires only that a new employee be an Arkansas taxpayer during the tax year in which the credit was issued.