(a) Upon receipt of the qualified investment, whether through the sale of an equity interest, or the issuance of a convertible debt instrument by the company in exchange for an infusion of cash from the investor, the qualified business shall provide the following documentation to the Arkansas Economic Development Commission:
- (1) The name and address of the original purchaser or purchasers;
- (2) The tax identification number or numbers of the person or persons entitled to the credit;
- (3) The original date of the qualified transaction;
- (4) The number and type of equity investment purchased;
- (5) The amount paid by the original purchaser for the equity interest or convertible debt instrument;
- (6) The amount of dividends and distributions previously paid by the business to the purchaser;
- (7) Articles of incorporation;
- (8) Certificate of good standing;
- (9) Subscription agreement for equity purchase or a purchase agreement detailing a convertible debt structure, terms, and conversion event; and
- (10) Proof of transfer of funds documenting the investor as the source of funds and the company as the recipient.
- (b) The commission will issue a certificate of tax credit that must be attached to the income tax return on which the credit is first claimed.
- (c) Issuance of credit to a pass-through entity shall be according to each member’s proportional ownership interest of the pass-through entity.