§ 15-4-3601. Title

This subchapter shall be known and may be cited as the “New Markets Jobs Act of 2013”.

§ 15-4-3602. Definitions

As used in this subchapter: (1) “Applicable percentage” means: (A) Zero percent (0%) for the first two (2) credit allowance dates; (B) Twelve percent (12%) for the third, fourth, and fifth credit allowance dates; and (C) Eleven percent (11%) for the sixth and seventh credit allowance dates; (2) “Credit allowance date” means with respect to […]

§ 15-4-3603. New market tax credit

(a) A corporation, limited liability company, association, partnership, or other business entity that makes a qualified equity investment earns a vested right to a tax credit against state premium tax liability. (b) The tax credit established under subsection (a) of this section may be utilized as follows: (1) On each credit allowance date of the […]

§ 15-4-3604. Transferability

(a) A tax credit claimed under this subchapter shall not be refundable or saleable on the open market. (b) (1) A tax credit earned by a corporation, limited liability company, association, partnership, or other business entity may be allocated to the partners, members, or shareholders of the corporation, limited liability company, association, partnership, or other […]

§ 15-4-3605. Certification of qualified equity investments

(a) (1) (A) (i) A qualified community development entity that seeks to have an equity investment or a long-term debt security designated as a qualified equity investment eligible for a tax credit under this subchapter shall apply to the Arkansas Economic Development Commission. (ii) The commission shall begin accepting applications on July 15, 2013. (B) […]

§ 15-4-3606. Letter rulings

(a) Subject to the requirements and limitations of this section, the Arkansas Economic Development Commission shall issue letter rulings regarding the tax credit program authorized under this subchapter. (b) (1) The commission shall respond to a request for a letter ruling within sixty (60) days of receiving the request. (2) (A) However, the commission may […]

§ 15-4-3607. Recapture

The Arkansas Economic Development Commission shall recapture the tax credit allowed under this subchapter from the taxpayer that claimed the tax credit if: (1) (A) Any amount of a federal tax credit available with respect to a qualified equity investment that is eligible for a tax credit under this subchapter is recaptured under 26 U.S.C. […]

§ 15-4-3608. Cure period — Notice of noncompliance

(a) Enforcement of each of the recapture provisions under § 15-4-3607 is subject to a six-month cure period. (b) Recapture shall not occur until the Arkansas Economic Development Commission has given the qualified community development entity written notice of its noncompliance and has afforded the qualified community development entity six (6) months from the date […]

§ 15-4-3609. Refundable performance fee

(a) A qualified community development entity that seeks to have an equity investment or long-term debt security designated as a qualified equity investment eligible for a tax credit under this subchapter shall pay a fee in the amount one-half of one percent (0.5%) of the amount of the equity investment or long-term debt security requested […]

§ 15-4-3610. Retaliatory tax

(a) An entity claiming a tax credit under this subchapter is not required to pay any additional retaliatory tax levied under § 23-63-102 as a result of claiming the tax credit. (b) In addition to the exclusion in subsection (a) of this section, it is the intent of this subchapter that an entity claiming a […]

§ 15-4-3611. Decertification

(a) (1) If a qualified equity investment is certified under § 15-4-3605, the qualified equity investment shall not be decertified unless the requirements of subsection (b) of this section are met. (2) Until all qualified equity investments issued by a qualified community development entity are decertified under this section, the qualified community development entity shall […]

§ 15-4-3612. Reports

(a) (1) A qualified community development entity that issues a qualified equity investment under this subchapter shall submit a report to the Arkansas Economic Development Commission within five (5) business days after the first anniversary of the initial credit allowance date. (2) The report required under subdivision (a)(1) of this section shall provide evidence: (A) […]

§ 15-4-3613. Revenue impact assessment

(a) (1) Before making a qualified low-income community investment, a qualified community development entity shall submit to the Arkansas Economic Development Commission for review a revenue impact assessment prepared by a nationally recognized third-party independent economic forecasting firm utilizing the Regional Economics Model, Inc., or MIG, Inc., model that demonstrates that the qualified low-income community […]

§ 15-4-3614. Rules

The Arkansas Economic Development Commission shall promulgate rules to implement this subchapter.