Arkansas Code § 26-51-1104 - Documentation Required

(a) To claim the credit granted by § 26-51-1102, the taxpayer must provide the following for each piece of machinery and equipment donated or sold below cost:

(1) A statement from the receiving qualified educational institution that it has received the machinery or equipment; that the machinery or equipment is new machinery or equipment within the meaning of this subchapter; that it received the machinery or equipment as a donation or, if it purchased the machinery or equipment below cost, a statement of the amount paid for the machinery or equipment; and that the machinery or equipment has been donated or sold to the qualified educational institution for use in a qualified education program or a qualified research program; and

(2) In the case of a donation or sale by a retail or wholesale business, a copy of the invoice from the business' supplier showing the actual cost of the machinery or equipment. In the case of a donation or sale below cost by a manufacturer, a copy of the manufacturer's wholesale price list showing the lowest price of the machinery or equipment for which credit is claimed.

(b) To claim the credit granted by § 26-51-1102, the taxpayer must show that the Division of Science and Technology of the Arkansas Economic Development Commission and the Department of Higher Education have approved the qualified research expenditure as a part of a qualified research program.

(c) Copies of each of the above documents shall be filed by the taxpayer with his or her return as an attachment to the form prescribed by the Director of the Department of Finance and Administration.

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Last modified: November 15, 2016