1. (a)

   1. (1) Enterprise zone credits are issued and verified through the Tax Credits/Special Refunds Section of the Department of Finance and Administration.
   2. (2) Original certificates must be attached to the corporation income tax return in order to claim the tax credits.
   3. (3) The tax credits must be used for the tax year in which the increase in average annual employment occurred.
   4. (4) The tax credits should be used to the full extent of the computed tax for the initial and succeeding tax years.

   5. (5) Any unused credits may be carried forward for up to:

      1. (A) Four (4) consecutive tax years following the tax year in which the credit originated if approved prior to March 25, 1997; or
      2. (B) Nine (9) consecutive tax years following the tax year in which the credit originated if approved on or after March 25, 1997.

   6. (6)

      1. (A) If more than one (1) credit is involved, the taxpayer should specify in which order the credits should be claimed.
      2. (B) If the taxpayer does not specify the order, the credits will be applied in the order that will be of best advantage to the taxpayer.

2. (b)

   1. (1) Regional headquarters and steel service centers (SIC 5051) may qualify for the tax incentive credits.

   2. (2) These taxpayers must:

      1. (A) Employ fifty (50) or more new permanent employees; and
      2. (B) Not make retail sales to the general public.

3. (c)

   1. (1) Under prior law, new employees were required to be Arkansas residents.
   2. (2) The law now requires only that a new employee be an Arkansas taxpayer during the tax year in which the credit was issued.

Codification Notes: “SIC” means Standard Industrial Classification.