(d) If the Director of the Arkansas Economic Development Commission approves a project for a rebate or tax credit of qualified production costs, the production company shall also receive an additional rebate or tax credit of ten percent (10%) for:

1. (1)

   1. (A) The payroll of below-the-line employees involved in the production who are:

(i) Full-time residents of Arkansas; or

1. (ii) Veterans.

   1. (B) If a production company hires a payroll service company to handle the payroll of a production company, the payroll payments and otherwise allowable shall be allowed an eligible expenditure if all eligible income payments to employees and independent contractors done through the payroll service are subject to Arkansas state income taxes.
   2. (C) If approved by the Director of the Arkansas Economic Development Commission, the employment incentive shall include the first five hundred thousand dollars ($500,000) of a highly compensated individual’s salary; and
2. (2) Expenditures paid to a veteran-owned small business for qualified production costs.

(e) To receive the enhanced ten percent (10%) incentive, a production company must provide to the Film Office of the Arkansas Economic Development Commission the following completed forms for each individual or business that qualifies:

1. (1) Declaration of Arkansas Residency form provided by the Arkansas Economic Development Commission; or
2. (2) Declaration of Veteran Status or Veteran-Owned Business Status form provided by the commission.

(g)

1. (1) If the Director of the Arkansas Economic Development Commission approves a project for a tax incentive under this program, a state-certified production shall be granted an additional tax incentive of five percent (5%) for either:

   1. (A) The payroll of below-the-line employees whose full-time permanent address is located in a Tier 3 or Tier 4 county in the annual ranking of counties established by the commission under Arkansas Code § 15-4-2704; or
   2. (B) Expenditures paid to a person or business for qualified production costs associated with a state-certified production project whose address is located in a Tier 3 or Tier 4 county in the annual ranking of counties established by the commission under Arkansas Code § 15-4-2704.

2. (2) Producing a qualified multiproject production, including without limitation:

   1. (A) A television series; or
   2. (B) A multi-film project.

3. (3) To receive the enhanced five percent (5%) incentive allowed for an employee, or persons or businesses located in a Tier 3 or Tier 4 county, a production company must submit to the Film Office a Declaration of Arkansas Residency form that verifies:

   1. (A) An employee’s full-time permanent address is located in a Tier 3 or Tier 4 county; or
   2. (B) A person’s or business’s address is located in a Tier 3 or Tier 4 county.