1. (a) Income tax credit — Arkansas Code § 15-4-1224 [repealed].

   1. (1) The original purchaser of common stock in a county or regional industrial development corporation shall be entitled to a credit against any Arkansas income tax liability that the purchaser may have.
   2. (2) The credit shall be determined as follows: Example: Purchase price $1,000,000 Credit allowed is 33% of the purchase price of the common stock $330,000 Tax year 1991 1992 1993 Tax liability 20,000 50,000 80,000 Credit allowed 10,000 25,000 40,000 (50% of tax liability)

2. (b) Gain or loss upon sale or disposition of common stock — Arkansas Code § 15-4-1224 [repealed].

   1. (1) The basis for computation of gain or loss upon the sale of the common stock in a county or regional industrial development corporation shall be reduced by the amount of the income tax credits previously deducted.
   2. (2) The basis shall be further reduced by ten percent (10%) of the original purchase price if the stock is disposed of within five (5) years of its original purchase date. Example: Stock purchased in 1991, sold in 1994 Purchase price $1,000,000 Less credit claimed - 75,000 Less 10% of purchase price -100,000 Basis of stock for Arkansas tax purposes 825,000 Selling price 1,500,000 Taxable gain $ 675,000

Codification Notes: Arkansas Code § 15-4-1224 was repealed by Acts 2017, No. 374, § 5.