Arkansas Code § 26-51-512 - Rice Straw Tax Credit

(a) As used in this section:

(1) "End user" means a person who purchases and uses rice straw for processing, manufacturing, generating energy, or producing ethanol; and

(2) "Rice straw" means the dry stems of rice left after the seed heads have been removed.

(b) (1) There is allowed a credit against the income tax imposed by the Income Tax Act of 1929, ยง 26-51-101 et seq., in the amount of fifteen dollars ($15.00) for each ton of rice straw over five hundred (500) tons that is purchased by an Arkansas taxpayer who is the end user.

(2) The amount of credit that may be used by the taxpayer for a taxable year may not exceed fifty percent (50%) of the amount of income tax due for that tax year.

(3) Any unused credit may be carried forward for ten (10) consecutive tax years following the tax year the credit was earned.

(c) A taxpayer who claims a credit under this section shall not claim any other state tax credit or deduction for the purchase of rice straw.

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Last modified: November 15, 2016