Section
1401.1
PURPOSE.
A. The State of Arkansas is blessed with
abundant rainfall and other surface and underground water resources which, when
managed conjunctively, can provide a continuous high-quality water supply to
meet the foreseeable needs of the entire state.
B. Existing water use patterns are depleting
ground water supplies at an unacceptable rate and alternative surface water
supplies are not available in sufficient quantities without developing
additional water storage to alleviate this ground water depletion
problem.
C. The tax incentives
provided under this program will encourage the water users to invest in:
(1) the construction of impoundments to
utilize available surface water and reduce our dependence on ground
water;
(2) the conversion from
ground water use to surface water use when surface water is
available;
(3) the water
conservation practice of land leveling to reduce agricultural irrigation water
use.
D. It is of utmost
importance to Arkansas that within critical ground water areas, surface water
be used when available.
Section
1401.2
ENABLING AND PERTINENT
LEGISLATION.
A. Ark. Code Ann. §
26-51-1001 (1995
supp.), et seq. , the Water Resource Conservation and
Development Incentives Act.
B. Ark.
Code Ann. §
15-20-201
et seq. , the Soil and Water Conservation
Commission.
C. Ark. Code Ann. §
25-15-501
et seq. , the Arkansas Administrative Procedure
Act.
Section 1401.3
DEFINITIONS. Unless the context requires otherwise,
the following definitions shall apply to all parts of this title:
A. "Acre-foot" means the volumetric measure
equal to forty-three thousand five hundred sixty (43,560) cubic feet or
approximately three hundred twenty-five thousand nine hundred (325,900)
gallons.
B. "Act" means the Water
Resource Conservation and Development Incentives Act.
C. "Application" means a written request for
approval for tax credits, describing the project including a water conservation
plan outlining the operation of the project and any additional requirements as
the Commission may adopt by rule.
D. "Chief Engineer" means the Chief Engineer
of the Commission.
E. "Commission"
means the Arkansas Soil and Water Conservation Commission, established pursuant
to Ark. Code Ann. §§
15-20-201 to
208.
F. "Critical ground water
area" means those areas that are designated by the Commission pursuant to the
Arkansas Groundwater Protection and Management Act, contained in Title 15,
Chapter
22, Subchapter 9 of the Arkansas Code of
1987 Annotated.
G. "Department"
means the Revenue Division of the Arkansas Department of Finance and
Administration.
H. "Executive
Director" means the Executive Director of the Arkansas Soil and Water
Conservation Commission.
I. "Fee"
means the payment made by the taxpayer to the Commission for processing the
application pursuant to Section
1402.2
of these rules.
J. "Land leveling"
means modifying the surface relief of a field to a planned grade to provide a
more suitable surface for efficiently applying irrigation water without
excessive erosion, loss of water quality, or damage to land by water
logging.
K. "Local district" means
the conservation district in which the project is located.
L. "Project" means:
1. The construction, installation or
restoration of water impoundments or water control structures of twenty (20)
acre-feet or more designed for the purpose of storing water to be used for
agricultural, commercial, or industrial purposes;
2. The conversion from ground water to
surface water use by agricultural, commercial, industrial or recreational water
user.
3. Agricultural land leveling
resulting in water savings due to the more efficient use of irrigation water
for which tax credits are claimed.
4. The purchase and installation of water
measuring or metering devices used to determine the quantity of water used.
Installation of such devices shall be considered a conversion from ground water
to surface water for tax credit purposes.
M. "Project cost" means the actual
expenditure for a project less any reimbursement received by the taxpayer from
cost-share programs.
N. "Taxpayer"
means natural person, corporation or other entity making application for a tax
credit under this program.
O.
"USDA-NRCS" means the United States Department of Agriculture National
Resources Conservation Service or its successor.
Section 1401.4
APPLICABILITY.A. The
tax credits provided under this program shall apply to taxable years beginning
on or after January 1, 1996, and all taxable years thereafter.
B. Any tax credits issued to partnerships,
limited liability companies, Subchapter corporations or fiduciaries may pass
through to their members, managers, partners, shareholders and/or
beneficiaries.
Section
1401.5
LIMITATIONS.
A. Prior to claiming any tax credits under
this program, a taxpayer must obtain a certification from the Executive
Director certifying to the Department that the taxpayer has met all the
requirements and qualifications. In order to obtain certification the taxpayer
must follow the procedure contained in Subtitle II of these rules.
B. Any taxpayer claiming a tax credit under
this program may not claim a credit under the Water Resources Conservation and
Development Incentives Act of 1985 or any similar program for any costs related
to the same project.
C. A taxpayer
shall not receive a tax credit for costs which are reimbursed from cost share
or other programs.
Section 1401.7
APPEALS.A. Except
as otherwise provided herein, a taxpayer may appeal, pursuant to Title I,
Subtitle V of the Commission's Rules, any decision or action of the Executive
Director.
B. All decisions related
to recapture of tax credits shall be appealed in accordance with the
Department's established procedures as found in Arkansas Code Annotated §
26-18-101
et seq.