1. (a)

   1. (1) Applicants may request letter rulings from the Arkansas Economic Development Commission regarding new market tax credits.
   2. (2) Letter rulings bind all state agencies, including the commission, its agents, and successors, until the QCDE or its shareholders, members, or partners claim all of the applicable new market tax credits on an Arkansas tax return or report.

2. (b)

   1. (1) The commission shall respond to letter ruling requests within sixty (60) days of such receipt of request.
   2. (2) In rendering letter rulings under the New Markets Jobs Act of 2013, Arkansas Code § 15-4-3601 et seq., the commission shall look for guidance to 26 U.S.C. § 45D and 26 C.F.R. § 1.45D-1, as they existed on January 1, 2013, and to the extent they are applicable.

3. (c) The commission may deny a letter ruling request for good cause by listing reasons which include without limitation the following:

   1. (1) The applicant requests the commission to determine whether a statute is constitutional or a regulation is lawful;
   2. (2) The request involves a hypothetical situation or alternative plans;

   3. (3) The facts or issues presented in the request are:

      1. (A) Unclear;
      2. (B) Overbroad;
      3. (D) Insufficient; or
      4. (E) Otherwise inappropriate as a basis upon which to issue a letter ruling; and
   4. (4) The issue is currently being considered in a rulemaking procedure, contested case, or other agency or judicial proceeding that may resolve the issue.

4. (d)

   1. (1) An applicant may:

      1. (A) Provide a draft letter ruling for the commission’s consideration; and
      2. (B) Withdraw a request for a letter ruling, in writing, before the issuance of the letter ruling.
   2. (2) A letter ruling issued under this section applies only to the applicant that requested the letter ruling.
   3. (3) However, a taxpayer identified in a letter ruling may rely on the letter ruling to the extent the letter ruling applies to the taxpayer.

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