Increased tax refund for major maintenance and improvement projects

Checkout our iOS App for a better way to browser and research.

  1. (a) A taxpayer that is eligible for a refund of excise taxes under § 26-52-447 or § 26-53-149 is eligible for a refund of one hundred percent (100%) of the sales and use taxes levied in §§ 26-52-301, 26-52-302, 26-53-106, and 26-53-107 on the tangible personal property and services subject to §§ 26-52-447 and 26-53-149 for projects that meet the following requirements:

    1. (1) The taxpayer has entered into a financial incentive agreement with the Arkansas Economic Development Commission for the project; and

    2. (2) The taxpayer expends at least three million dollars ($3,000,000) on an approved project that includes the purchase of tangible personal property and services that are either exempt or subject to a partial refund of tax under § 26-52-402, § 26-52-447, § 26-53-114, or § 26-53-149.

  2. (b) A taxpayer shall file with the commission an application for the increased refund for major maintenance and improvement projects provided in this section.

  3. (c) The increased refund of sales and use taxes for major maintenance and improvement projects provided in this section is a discretionary incentive and is not available unless offered by the Director of the Arkansas Economic Development Commission.

  4. (d) The director shall forward the taxpayer's application, financial incentive agreement, any other pertinent documentation, and a written copy of the determination under this subsection to the Secretary of the Department of Finance and Administration if the director:

    1. (1) Determines that the taxpayer is eligible for the increased refund for major maintenance and improvement projects provided for in this section;

    2. (2) Determines that the taxpayer has provided reasonable proof that there will be a positive return on the taxpayer's investment in the major maintenance and improvement project that is sufficient to offset the taxes refunded under this section;

    3. (3) Determines that the taxpayer has provided a defined scope, beginning date, and ending date for the major maintenance and improvement project;

    4. (4) Determines that the refund is reasonably necessary for the taxpayer to remain competitive and preserve Arkansas jobs; and

    5. (5) Agrees to provide the incentive under this section.

  5. (e) A taxpayer that has been approved for the increased refund for major maintenance and improvement projects provided for in this section may make changes in a major maintenance and improvement project by written amendment to the project plan filed with the commission as part of the financial incentive agreement required under this section.

  6. (f) Except as otherwise provided in this section, a refund under this section is subject to the Arkansas Tax Procedure Act, § 26-18-101 et seq., in the same manner as other refunds permitted under § 26-18-507.

  7. (g) An expenditure shall not qualify for both the increased refund for major maintenance and improvement projects under this section and the retention tax credit provided for in § 15-4-2706(c).

  8. (h) The director and the secretary may promulgate rules necessary to implement this section.

  9. (i)

    1. (1) A taxpayer may apply for an increased refund for major maintenance and improvement projects under this section through June 30, 2022.

    2. (2) An application for an increased refund for major maintenance and improvement projects under this section shall not be accepted on or after July 1, 2022.


Download our app to see the most-to-date content.