Financial incentive plan

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The financial incentive plan shall:

  1. (1) Specify the tax incentives the business is to receive, including the maximum amount of income tax credit the business may claim for each tax year covered by the financial incentive plan;

  2. (2)

    1. (A) Specify the term of the financial incentive plan, which cannot exceed ten (10) years.

    2. (B) The ten (10) years shall be calculated from the date the financial incentive plan is signed by the business and the Arkansas Economic Development Commission;

  3. (3) Specify the annual tax credit earned based on total investment divided by the term of the financial incentive plan and attach copies of the business's loan documents which reflect the amount of the annual payments, or documents reflecting the amount of total investment in land, buildings, and equipment;

  4. (4) Specify the amount of the average hourly wage the business must maintain to receive benefits under the financial incentive plan;

  5. (5) Specify the percentage of income tax liability against which the income tax credit may be claimed;

  6. (6) Specify that the tax credits can never exceed the total amount of the debt service or for projects initiated after June 1, 2000, the total amount of the investment in land, buildings, and equipment; and

  7. (7) Specify that after the term of the financial incentive plan expires, the business may not claim any unused credit against income tax liability for subsequent tax years.


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