Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-805 - CONSOLIDATED CORPORATE RETURNS
Rule 1.26-51-805(e) - Allocation of Tax Credits
If any member of a consolidated group has an income tax credit, the credit may be applied to the group's consolidated income, regardless of whether or not the member earning the credit had taxable income.
If a member of a consolidated group which earns a credit leaves the group, the credit will first be applied to the last consolidated return in which the member participated. Any remaining balance will be applied to the next return of the member which earned the credit.
If a corporation with an income tax credit merges into another corporation, the credit may be claimed by the surviving corporation only when the ownership of both the acquired and acquiring corporations is substantially the same and at least 80% of the voting stock is owned by the same person or, prior to the acquisition, the acquiring corporation owned at least 80% of the voting stock of the acquired corporation.