(a)

1. (1) After the equity investment incentive agreement has been signed by the business and the Arkansas Economic Development Commission, the business may:

   1. (A) Solicit investors; and
   2. (B) Offer the equity investment incentive tax credit to the investors.
2. (2) Only cash investments shall qualify for the equity investment incentive tax credit under the Equity Investment Incentive Act of 2007, Arkansas Code § 15-4-3301 et seq., including without limitation the initial principal amount of a qualifying convertible financing structure if the convertible financing structure is required to be converted to equity by the business receiving the investment no later than five (5) years from the date the convertible financing structure was consummated.

(c) A purchaser of an equity interest in an eligible business is entitled to a credit against any state income tax liability:

1. (1) That may be imposed on the purchaser for any tax year beginning in the tax year in which the equity interest was purchased; and
2. (2) For a period not to exceed nine (9) years beyond the tax year in which the equity interest was purchased.

(f) In any one (1) tax year, the credit allowed shall not exceed fifty percent (50%) of the net Arkansas state income tax liability or premium tax liability of the taxpayer:

1. (1) After all other credits and reductions in tax have been calculated; and
2. (2) Before the credit allowed by this section is applied.