1. (a) Biotechnology tax credits are issued and verified through the Tax Credits/Special Refunds Section of the Department of Finance and Administration.

2. (b) Original certificates must be:

   1. (1) Obtained from the Arkansas Economic Development Commission; and
   2. (2) Attached to the corporation income tax return in order to claim the credit.

3. (c) Credit is limited to:

   1. (1) The first fifty thousand dollars ($50,000) of income tax liability arising during each year; and
   2. (2) Fifty percent (50%) of any remaining income tax liability for each year.
4. (d) Unused tax credits may be carried forward for up to nine (9) consecutive tax years following the tax year in which the credit originated.
5. (e) A taxpayer that receives a biotechnology tax credit for the purchase of machinery or equipment shall not be entitled to claim any other state or local tax credits or deductions based on the purchase of such machinery or equipment (other than the deduction for normal depreciation).
6. (f) This tax credit shall be available for tax years beginning on January 1, 1997, and thereafter. Example: The tax liability before credits of ABC Corporation for 1997 is eighty-one thousand two hundred seventy-three dollars ($81,273). The ABC Corporation has available a seventy-five-thousand-dollar biotechnology tax credit. The 1997 tax liability for ABC Corporation is computed as follows:

   1997 tax liability	$ 81,273
   Less: credit limit of $50,000	(50,000)
   Pre-adjusted tax liability	$ 31,273
   Less: 50% of remaining liability	(15,636)
   Adjusted tax liability	$ 15,637
   Biotechnology tax credits	$ 75,000
   Less: credits applied towards tax	(65,636)
   Available tax credit carryforward	$ 9,364

Codification Notes: Arkansas Code § 2-8-101 et seq., was repealed by Acts 2009, No. 716, § 1.