Arkansas Code § 26-51-1605 - Limits on Amount of Credit -- Applicability of Credit

(a) The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of individual or corporate income tax otherwise due. Any unused credit may be carried over for a maximum of two (2) consecutive taxable years.

(b) If the business is an S corporation, the pass-through provisions of § 26-51-409, as in effect for the taxable year the credit is earned, shall be applicable.

(c) A partner's or member's distributive share of the credit shall be determined by the partnership or limited liability company agreement, unless the agreement does not have substantial economic effect or does not provide for the allocation of credits. If the agreement does not have substantial economic effect or does not provide for the allocation of the credit, the credit shall be allocated according to the partner's or member's interest in the partnership, pursuant to 26 U.S.C. § 704(b), as in effect on January 1, 1995.

(d) A taxpayer who trains a youth apprentice in a certified youth apprenticeship program as provided in § 26-51-1603 shall be entitled to the tax credit provided in this subchapter for such youth apprentice, even though the apprentice receives his or her wages for such training from a 501(c)(3) corporation.

(e) The tax credit provided by this subchapter shall apply to taxable years beginning January 1, 1998, and all taxable years thereafter.

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Last modified: November 15, 2016