As used in this part:

1. (1) “Agreement” means a financial incentive agreement entered into pursuant to Arkansas Code § 15-11-506, by and between the Director of the Arkansas Economic Development Commission and an approved company, with respect to a tourism attraction project;
2. (2) “Approved company” means any eligible company that is seeking to undertake a tourism attraction project that has been approved by the Director of the Arkansas Economic Development Commission after obtaining the review and advice of the Secretary of the Department of Parks, Heritage, and Tourism;

3. (3)

   1. (A) “Approved costs” means:

      1. (i) Obligations incurred on or after the effective date of the financial incentive agreement associated with the construction or expansion of a tourism attraction for labor and to vendors, contractors, subcontractors, builders, suppliers, delivery persons, and material persons in connection with the acquisition, construction, equipping, and installation of a tourism attraction project;
      2. (ii) The costs of acquiring real property or rights in real property in connection with a tourism attraction project, and any costs incidental thereto;

      3. (iii) The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of the acquisition, construction, equipping, and installation of a tourism attraction project that is not paid by the:

         1. (a) (a) Vendor;
         2. (b) (b) Supplier;
      4. (c) (c) Delivery person;

      5. (d) (d) Contractor; or

         1. (e) (e) Otherwise provided;
      6. (iv) All costs of architectural and engineering services, including, but not limited to, estimates, plans and specifications, preliminary investigations, and supervision of construction and installation, as well as for the performance of all the duties required by or consequent to the acquisition, construction, equipping, and installation of a tourism attraction project;
      7. (v) All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, and installation of a tourism attraction project;

      8. (vi) All costs required for the installation of utilities in connection with a tourism attraction project, including, but not limited to:

         1. (a) (a) Water;
         2. (b) (b) Sewer;
      9. (c) (c) Sewage treatment;

      10. (d) (d) Gas;

          1. (e) (e) Electricity;
          2. (f) (f) Communications; and
          3. (g) (g) Off-site construction of utility extensions paid for by the approved company; and
      11. (vii) All other costs comparable with those described in subdivision (3)(A) of this section.

   2. (B) “Approved costs” does not include:

      1. (i) Costs incurred prior to the effective date of the financial incentive agreement, except for preconstruction costs;
      2. (ii) Expenditures for routine repair and maintenance that do not result in new construction, or expansion;
      3. (iii) Routine operating expenditures; and
      4. (iv) Expenditures incurred at multiple facilities;
4. (4) “Director” means the Director of the Arkansas Economic Development Commission or the director’s designated representative;

5. (5) “Eligible company” means any corporation, limited liability company, partnership, registered limited liability partnership, sole proprietorship, or business trust, or any other entity that invests:

   1. (A) A minimum of five hundred thousand dollars ($500,000) in a high unemployment county or one million dollars ($1,000,000) in any other county for the purpose of constructing, operating, or intending to operate a tourism attraction project, whether owned or leased, within the state that meets the standards promulgated by the director pursuant to Arkansas Code § 15-11-504; or

   2. (B) For the purpose of constructing, operating, or intending to operate a tourism attraction project, whether owned or leased, located in a Natural State Initiative Opportunity Zone, that meets the standards promulgated by the director pursuant to Arkansas Code §§ 15-11-504 and 15-11-512:

      1. (i) A minimum of two hundred fifty thousand dollars ($250,000) in a high-unemployment county; or
      2. (ii) Five hundred thousand dollars ($500,000) in any other county;
6. (6) “Final approval” means the action taken by the Director of the Arkansas Economic Development Commission authorizing the eligible company to receive inducements under Arkansas Code §§ 15-11-507 and 15-11-509;

7. (7)

   1. (A) “High unemployment” means an unemployment rate equal to or in excess of one hundred fifty percent (150%) of the state’s average unemployment rate for the preceding calendar year as specified by statewide annual labor force statistics compiled by the Division of Workforce Services, when the state’s annual average unemployment rate is six percent (6%) or below.
   2. (B) When the state’s annual average unemployment rate is above six percent (6%), “high unemployment” means equal to or in excess of three percent (3%) above the state’s average unemployment rate for the preceding calendar year as specified by statewide annual labor force statistics compiled by the Division of Workforce Services;

8. (8)

   1. (A) “Increased state sales tax liability” means that portion of an approved company’s reported state sales (gross receipts) tax liability resulting from taxable sales of goods and services to its customers at the tourism attraction for any monthly sales tax reporting period after the approved company provides the certification required by Arkansas Code § 15-11-507(b) that exceeds the reported state sales tax liability for sales to its customers for the same month in the calendar year immediately preceding such certification.
   2. (B) If an approved company purchases an existing tourism attraction that was selling goods and services at the time of purchase and that may or may not have been entitled to the benefits of Arkansas Code § 15-11-501 et seq., prior to such purchase, the “increased state sales tax liability” resulting from any investments in the tourism attraction by the new owners means that portion of the approved company’s reported state sales (gross receipts) tax liability resulting from taxable sales of goods and services to its customers at the tourism attraction for any monthly sales tax reporting period after the approved company provides the certification required by Arkansas Code § 15-11-507(b) that exceeds the reported state sales tax liability for sales made by the seller of the tourism attraction for the same month in the calendar year immediately preceding such certification.
   3. (C) The prohibitions against disclosure of confidential tax information provided in Arkansas Code § 26-18-303 shall not apply for purposes of computing the credit available;
9. (9) “Inducements” means the Arkansas sales tax credit as prescribed in Arkansas Code § 15-11-507 and/or the Arkansas income tax credit as prescribed in Arkansas Code § 15-11-509;
10. (10) “Investment threshold” means the minimum amount of eligible project costs that must be incurred in order to qualify for eligibility;
11. (11) “Natural State Initiative Opportunity Zone” means a geographic area designated by the Director of the Arkansas Economic Development Commission under Arkansas Code § 15-11-512 where a tourism attraction may be located and receive incentive benefits under the Arkansas Tourism Development Act, Arkansas Code § 15-11-501 et seq.;

12. (12)

    1. (A) “New full-time permanent employee” means a position or job that:

       1. (i) Was created as a result of a tourism attraction project; and
       2. (ii) Is filled by one (1) or more employees or contractual employees who were Arkansas taxpayers during the year in which the tax credits or incentives were earned or claimed.
    2. (B) The employee or employees must work an average of at least thirty (30) hours per week.
    3. (C) Provided, however, in order to qualify for the provisions of Arkansas Code § 15-11-501 et seq., a contractual employee must be offered a benefits package comparable to a direct employee of the business seeking incentives;
13. (13) “Payroll” means the total taxable wages, including overtime and bonuses, paid during the preceding tax year of the approved tourism attraction to the new full-time permanent employees hired after the date of the signed financial incentive agreement;

14. (14) "Preconstruction costs" means the cost of eligible items incurred before the start of construction, including:

    1. (A) Project planning costs;
    2. (B) Architectural and engineering fees;
    3. (C) Land;
    4. (D) Feasibility studies;
    5. (E) Right-of-way purchases;
    6. (F) Utility extensions;
    7. (G) Site preparations;
    8. (H) Purchase of mineral rights;
    9. (I) Building demolition;
    10. (J) Builders risk insurance;
    11. (K) Capitalized start-up costs;
    12. (L) Deposits and process payments on eligible machinery and equipment; and
    13. (M) Other costs necessary to prepare for the start of construction;

15. (15) “Qualified amusement park” means a commercial recreational activity that:

    1. (A) Operates at least three (3) consecutive months during a calendar year;
    2. (B) Offers rides, shows, games, and other diversions;
    3. (C) Qualifies as an approved company under this part;
    4. (D) Operates within a designated area of at least one hundred (100) acres; and
    5. (E) Has at least four million dollars ($4,000,000) of annual gross receipts from paid admissions during a calendar year;

16. (16)

    1. (A) “Tourism attraction” means:

       1. (i) A cultural or historical site;
       2. (ii) A recreational or entertainment facility;
       3. (iii) An area of natural phenomenon or scenic beauty;
       4. (iv) A theme park;
       5. (v) An amusement or entertainment park;
       6. (vi) An indoor or outdoor play or music show;
       7. (vii) Botanical gardens;
       8. (viii) Cultural or educational centers; and
       9. (ix) Brick and mortar restaurants located within a Natural State Initiative Opportunity Zone.

    2. (B) “Tourism attraction” does not include:

       1. (i) Lodging facilities, unless the facilities:

          1. (a) (a) Constitute a portion of a tourism attraction project and represent less than sixty percent (60%) of the total approved costs of the tourism attraction project, or unless the approved costs for the lodging facility exceeds five million dollars ($5,000,000) and is attached to a convention center containing seventy-five thousand square feet (75,000 sq. ft.) or contains a minimum of twelve thousand square feet (12,000 sq. ft.) of meeting or exhibit space; or
          2. (b) (b) Are located within a Natural State Initiative Opportunity Zone;
       2. (ii) Facilities that are primarily devoted to the retail sales of goods, unless the goods are created at the site of the tourism attraction project or if the sale of goods is incidental to the tourism attraction project;
       3. (iii) Facilities that are not open to the general public;

       4. (iv) Facilities that do not serve as a likely destination where individuals who are not residents of the state would remain overnight in commercial lodging at or near the tourism attraction project, such as:

          1. (a) (a) Movie theaters;
          2. (b) (b) Bowling alleys;
       5. (c) (c) Fitness centers;

       6. (d) (d) Miniature golf courses;

          1. (e) (e) Go-kart tracks;
          2. (f) (f) Skating rinks;
          3. (g) (g) Night clubs;
          4. (h) (h) Retail stores;

       7. (i) (i) Restaurants located outside a Natural State Initiative Opportunity Zone; and

          1. (j) (j) Any other establishments deemed by the Director of the Arkansas Economic Development Commission to primarily serve the local community and in-state residents;
       8. (v) Facilities owned by the State of Arkansas or a political subdivision of the state unless the facility is leased by an eligible company and is located within a Natural State Initiative Opportunity Zone; or

       9. (vi)

          1. (a) (a) Facilities established for the purpose of conducting legalized gambling.
          2. (b) (b) However, a facility regulated under the Arkansas Horse Racing Law, Arkansas Code § 23-110-101 et seq., or the Arkansas Greyhound Racing Law, Arkansas Code § 23-111-101 et seq., shall be a tourism attraction for purposes of Arkansas Code § 15-11-501 et seq., for:
17. (1) (1) Any approval project as outlined in subsection (j)(1) of Acts 1999, No. 1135; or
18. (2) (2) An approved project relating to pari-mutuel racing at the facility and not for establishing a casino or for offering casino-style gambling; and
19. (17) “Tourism attraction project” or “project” means the acquisition, including the acquisition of real estate by leasehold interest with a minimum term of ten (10) years, construction, and equipping of a tourism attraction; the construction and installation of improvements to facilities necessary or desirable for the acquisition, construction, and installation of a tourism attraction, including, but not limited to, surveys; installation of utilities, which may include, water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; and off-site construction of utility extensions to the boundaries of the real estate on which the facilities are located, all of which are to be used to improve the economic situation of the approved company in a manner that shall allow the approved company to attract persons.