ANNOUNCED AS TEMPORARYNo
Tax or social insurance relief
On March 14, 2017 the governor of Arkansas signed a bill (SB362) that repeals certain investment-incentive provisions by which the state had provided targeted tax relief. As originally enacted under the Consolidated Incentive Act of 2003, and codified in Arkansas Code §15-4-2706(c), investment tax credits were available for certain qualifying activities. Under the so-called InvestArk program, a manufacturing company was eligible for a retention sales and use tax credit if it had been in continuous operation in Arkansas for at least two years, and invested at least $5,000,000 in a project to construct, expand, or modernize a manufacturing facility. The tax credit was used to pay 50% of the taxpayers monthly direct pay sales and use tax liability. The new law abolished the program effective June 30, 2017 with respect to new projected (but did provide that “projects that qualify for a retention tax credit based on an application filed through June 30, 2017, shall continue to earn credits”).
In addition to other tax code reforms, the law also repealed the Economic Investment Tax Credit Act (Arkansas Code Title 26, Chapter 52, Subchapter 7). That law provided tax incentives for certain high-technology manufacturing sectors.
⚑ Please report this page in case you detect an inaccuracy in its content.