§ 15-4-3301. Title

This subchapter shall be known and may be cited as the “Equity Investment Incentive Act of 2007”.

§ 15-4-3302. Equity investment incentives — Creation — Purpose — Tax credit

(a) Equity investment incentives in the form of tax credits to persons or companies investing in certain types of eligible businesses are created. (b) The equity investment incentives shall: (1) Encourage capital investment in certain types of businesses including: (A) Early-stage businesses and start-up businesses in this state; (B) Businesses paying wages in excess of […]

§ 15-4-3303. Eligibility for equity investment incentive

(a) Eligibility for the equity investment incentive tax credit under this subchapter is limited to investments in: (1) Targeted businesses as defined in § 15-4-2703(43); or (2) A business that receives assistance in the form of equity investments from capital investment funds that target early-stage businesses and start-up businesses, if the business: (A) Pays not […]

§ 15-4-3304. Application for an equity investment incentive tax credit

(a) A business that seeks eligibility for an equity investment incentive tax credit under this subchapter shall file an application with the Arkansas Economic Development Commission. (b) The application shall include: (1) A business plan describing the proposed business for which an equity investment incentive tax credit is sought; (2) A projection of the amount […]

§ 15-4-3305. Award of an equity investment incentive tax credit

(a) A person or company that purchases an equity interest in a qualified business under § 15-4-3303(a) in any of the calendar years 2007 — 2028 is entitled to a credit against any state income tax liability that may be imposed on the person or company for any tax year, beginning in the tax year […]

§ 15-4-3306. Rules

The Arkansas Economic Development Commission and the Arkansas Development Finance Authority shall promulgate jointly rules to implement this subchapter.

§ 15-4-3307. Definition

As used in this subchapter, “convertible financing structure” means an investment mechanism that converts into equity at a subsequent event, including without limitation convertible debt, convertible equity, and a convertible note.