1. (a)

   1. (1) Subchapter M of the Internal Revenue Code as in effect on January 1, 1997, has been adopted with the exception of its tax rates.
   2. (2) Arkansas tax rates remain in effect as set forth in Arkansas Code § 26-51-205.
   3. (3) If a federal election is made relating to a RIC, REIT, FASIT, or any other corporation registered as an investment company, the same election is automatically deemed to have been made for Arkansas income tax purposes.
2. (b) If a corporation no longer qualifies as initially elected, then it must file an Arkansas corporation income tax return and be taxed as a Subchapter C corporation.

Codification Notes: “FASIT” means financial asset securitization investment trust. "REIT" means real estate investment trust. "RIC" means regulated investment company.