1. (a) QCDEs must invest in corporations, limited liability companies, associations, partnerships, or other business entities meeting the definition of “qualified active low-income community business” as defined in 26 U.S.C. § 45D and 26 C.F.R. § 1.45D-1, as they existed on January 1, 2013, if:

   1. (1) At the time of the QCDE’s investment or loan, the qualified active low-income community business meets the United States Small Business Administration size eligibility standards established in 13 C.F.R. § 121.101 – 201 as it existed on January 1, 2013; and
   2. (2) The qualified active low-income community business agrees to retain or create jobs that pay an average wage of at least one hundred fifteen percent (115%) of the federal poverty income guidelines for a family of four (4) in Arkansas.

2. (b) Qualified active low-income community business does not include:

   1. (1) Entities receiving incentives under Arkansas Code § 15-4-2705, § 15-4-2706(b), or § 15-4-2706(c)(2), unless waived by the Arkansas Economic Development Commission;
   2. (2) Any industry excluded under a rule of the commission, unless waived by the commission; or

   3. (3)

      1. (A) Entities that derive or project to derive at least fifteen percent (15%) of their annual revenue from the rental or sale of real estate.
      2. (B) This restriction does not apply when the entity is controlled by or under common control with another corporation, limited liability company, association, partnership, or other business entity that:

3. (i) Does not derive or project to derive at least fifteen percent (15%) of its annual revenue from the rental or sale of real estate; and

   1. (ii) Is the primary tenant of the real estate leased from the entity.

Codification Notes: "QCDE" means qualified community development entity.