1. (a)

   1. (1) A holder of a geotourism tax credit that sells, transfers, or assigns all or part of a tax credit must inform the Department of Finance and Administration of the sale, transfer, or assignment within thirty (30) days using the Notice of Credit Transfer form approved by the Department of Finance and Administration and included below.
   2. (2) A person or entity seeking benefits under the Delta Geotourism Incentive Act of 2007, Acts 2007, No. 518, for a credit that was transferred, sold, or assigned in whole or in part must apply to the Revenue Division of the Department of Finance and Administration with the same Notice of Credit Transfer required in subdivision (a)(1) of this section.

2. (b) The Department of Finance and Administration will forward the application to the Department of Parks, Heritage, and Tourism, which shall determine whether the investment made by the person or entity qualifies for the income tax credit based upon the following requirements:

   1. (1) If the transferee, purchaser, or assignee is located in the Lower Mississippi River Delta as described in 26 CAR § 71-103(b)(2), whether the transferee, purchaser, or assignee has previously made an investment to construct, expand, or remodel:

      1. (A) A geotourism-supporting business located in the Lower Mississippi River Delta as described in 26 CAR § 71-102(4) at any time prior to submitting the Notice of Credit Transfer to the Department of Finance and Administration; and
      2. (B) The investment was of at least twenty-five thousand dollars ($25,000); or

   2. (2) If the transferee, purchaser, or assignee is not located in the Lower Mississippi River Delta as described in 26 CAR § 71-103(b)(2), whether the transferee, purchaser, or assignee has previously made an investment to construct, expand, or remodel:

      1. (A) A geotourism-supporting business, a tourism attraction, or tourism-supporting business project as described in 26 CAR § 71-102 at any time prior to submitting the Notice of Credit Transfer to the Department of Finance and Administration; and
      2. (B) The investment was of at least one hundred thousand dollars ($100,000).

3. (c)

   1. (1) When the Department of Parks, Heritage, and Tourism determines that a business qualifies as a geotourism-supporting business and meets all other criteria pursuant to the act, it shall provide written certification to the Department of Finance and Administration that:

      1. (A) The business qualifies; and
      2. (B) Investments in the qualified business are eligible for the credit.
   2. (2) The Department of Parks, Heritage, and Tourism shall forward to the Department of Finance and Administration copies of the application, certification, and other pertinent documentation regarding the person or entity's qualification into the program.

4. (d) If the entity requesting the credit is a pass-through entity such as a Subchapter S corporation or an LLC, the entity must provide the Department of Parks, Heritage, and Tourism and the Department of Finance and Administration:

   1. (1) The names and addresses of all members; and
   2. (2) Their respective percentage ownership in the entity.
5. (e) The Department of Finance and Administration will forward a copy of the completed and approved Notice of Credit Transfer to the State Insurance Department if the new holder is an insurance company paying an annual premium tax on its gross premium receipts under Arkansas Code §§ 26-57-603 – 26-57-605.
6. (f) The Department of Finance and Administration and the Department of Parks, Heritage, and Tourism may inspect facilities and audit records of a person or an entity requesting or receiving an income tax credit under the act as necessary to determine qualification or to verify a claim.

Codification Notes: “LLC” means limited liability company.