Arkansas Code § 26-51-2409 - Credits Exceeding Tax Liability -- Assignment

(a) (1) The amount of the investment tax credit that may be used by a taxpayer for a taxable year shall not exceed the amount of income tax due from the taxpayer.

(2) Any unused investment tax credit may be carried over for five (5) consecutive taxable years for credit against the state income tax due from the taxpayer.

(3) (A) The investment tax credit may be transferred, sold, or assigned only one (1) time.

(B) A taxpayer who transfers, sells, or assigns the investment tax credit shall notify in writing the Department of Finance and Administration within thirty (30) days of the following information:

(i) The name, address, and taxpayer identification number of the transferee, purchaser, or assignee of the investment tax credit;

(ii) The original issuance date of the investment tax credit and the date of the transfer, purchase, or assignment of the investment tax credit; and

(iii) The amount paid for the investment tax credit by the transferee, purchaser, or assignee.

(C) (i) A transferee, purchaser, or assignee of an investment tax credit is entitled for the remaining carry-forward period to the investment tax credit under this subchapter only to the extent the investment tax credit is still available and only for the portion of the investment tax credit that has not been previously claimed by the transferor, seller, or assignor.

(ii) A transferee, purchaser, or assignee may not transfer, sell, or assign the investment tax credit.

(D) The department may refuse to recognize the investment tax credit if the transferor, seller, or assignor or the transferee, purchaser, or assignee of the investment tax credit fails to submit the eligibility certificate and any transfer, purchase, or assignment documents.

(4) An investment tax credit granted to a partnership, a limited liability company taxed as a partnership, or multiple owners of eligible central business improvement district property shall be passed through to the partners, members, or owners respectively on a pro rata basis or pursuant to an executed agreement between or among the partners, members, or owners documenting an alternative distribution method.

(b) (1) Any assignee of an investment tax credit may use an acquired investment tax credit to offset up to one hundred percent (100%) of the state income tax due from the assignee, but the offset shall not exceed the amount of income tax due for the taxable year.

(2) An assignor of an investment tax credit shall perfect an assignment to an assignee of an investment tax credit by notifying the department in writing within thirty (30) calendar days following the effective date of the assignment and shall provide any information required by the department to administer and carry out this subchapter.

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Last modified: November 15, 2016