- (a) In the case of donations or sales below cost, the credit shall be claimed in the tax year of the donation or sale below cost, but all or any part of the unused credit may be carried over to and claimed in succeeding tax years until the credit is exhausted or until the end of three (3) tax years next succeeding the tax year of the donation or sale below cost, whichever occurs earlier.
- (b) In the case of a qualified research expenditure, the credit shall be claimed in the tax year in which the expense incurred for the qualified research is actually paid, but all or any part of any unused credit may be carried over to and claimed in succeeding tax years until the credit is exhausted or until the end of three (3) tax years next succeeding the tax year of the payment for the qualified research expenditure, whichever occurs earlier.
- (c) Total credit for qualified research expenditures, donations, and sales below cost under Acts 1985, No. 759, shall be limited to fifty percent (50%) of the net tax liability of the taxpayer after all other credits and reductions in tax have been calculated.
- (d) Any person claiming any credit granted by Acts 1985, No. 759, for any expense or contribution or sale below cost shall not take any deduction under the Arkansas income tax law for the same expense or contribution.
(e) To claim any credit granted by Acts 1985, No. 759, the taxpayer shall provide the following information:
(1) An original official receipt from the institution receiving the donation, sale below cost, or qualified research expenditure which receipt shall:
- (A) Be signed by an officer of the institution;
- (B) Identify the position of that officer with the institution; and
- (C) Certify the following facts:
(i) The machinery or equipment received is new machinery or equipment within the meaning of Acts 1985, No. 759;
(ii) That the machinery has, in fact, been received or that the expenditure has, in fact, been made;
(iii) A statement as to whether the machinery and equipment was received as a donation or as a sale below cost;
- (iv) If the machinery was purchased in a sale below cost, a statement of the amount paid for the machinery or equipment; and
- (v) The name or title of the qualified education program or qualified research program for which the machinery and equipment is used or the expenditure made;
- (2) In the case of a donation or sale below cost by a retail or wholesale business, the taxpayer shall supply a copy of the invoice from the business’s supplier showing the actual cost of the machinery or equipment;
- (3) In the case of a donation or sale below cost by a manufacturer, the taxpayer shall provide a copy of the manufacturer's wholesale price list showing the lowest price for the machinery or equipment for which credit is claimed; and
- (4) In the case of a claim for credit for qualified research expenditures, the taxpayer must provide a statement from the Division of Science and Technology of the Arkansas Economic Development Commission that the Division of Higher Education of the Department of Education and the Division of Science and Technology have approved the expenditure as part of a qualified research program.