(a)

1. (1) Under Arkansas Code § 15-5-1406, the tax credit is limited to reducing a taxpayer's reported Arkansas income tax liability.
2. (2) The allowable tax credit may not exceed a taxpayer's total reported income tax liability for any given tax year and is therefore nonrefundable.
3. (3) Any unused tax credit may be carried forward for up to five (5) additional tax years immediately following the tax year for which the tax credit was first claimed.

(b)

1. (1) The tax credit is claimed when the Tax Credit Certificate holder files its state income tax return.
2. (2) The original certificate must be filed with the return.
3. (3) The Tax Credit Certificate holder shall complete the Credit Usage Tracking portion of the certificate for the applicable year to indicate the amount of tax credit to be used for that year.

4. (4) The holder:

   1. (A) Files the certificate, including the Credit Usage Tracking portion, with the tax return; and
   2. (B) Retains a copy of both parts of the certificate.

(d) The Revenue Division of the Department of Finance and Administration will:

1. (1) Match the filed certificate with the copy in its files; and
2. (2) Notify the DIG that the tax credit has been claimed.