Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 2-8-101 - BIOTECHNOLOGY DEVELOPMENT AND RESEARCH
Rule 1.2-8-101 - Biotechnology Tax Credit
Biotechnology tax credits are issued and verified through the Department's Tax Credits/Special Refunds Section. Original certificates must be obtained from the Arkansas Economic Development Commission and must be attached to the corporation income tax return in order to claim the credit. Credit is limited to the first $50,000 of income tax liability arising during each year and fifty percent (50%) of any remaining income tax liability for each year. Unused tax credits may be carried forward for up to nine (9) consecutive tax years following the tax year in which the credit originated. A taxpayer who receives a biotechnology tax credit for the purchase of machinery or equipment shall not be entitled to claim any other state or local tax credits or deductions based on the purchase of such machinery or equipment (other than the deduction for normal depreciation). This tax credit shall be available for tax years beginning on 01/01/97 and thereafter.
Example:
The tax liability before credits of ABC Corporation for 1997 is $81,273. The ABC Corporation has available a $75,000 biotechnology tax credit. The 1997 tax liability for ABC Corporation is computed as follows:
