(a) The taxpayer shall refund the amount of the tax credit determined under this part if, within three (3) tax years of the tax year for which a credit is allowed:

1. (1) The waste reduction, reuse, or recycling equipment is removed from Arkansas, is disposed of, is transferred to another person, or the taxpayer otherwise ceases to use the required materials or operate in the manner required by this part; or
2. (2) The Director of the Division of Environmental Quality finds that the taxpayer has demonstrated a pattern of intentional failure to comply with final administrative or judicial orders which clearly indicates a disregard for environmental regulation or a pattern of prohibited conduct which could reasonably be expected to result in adverse environmental impact.

(b) If the provisions of subsection (a) of this section apply, the taxpayer shall refund the amount of the tax credit which was deducted from income tax liability which exceeds the following amounts:

1. (1) Within the first year, zero dollars ($0);
2. (2) Within the second year, an amount equal to thirty-three percent (33%) of the amount of the credit allowed; and
3. (3) Within the third year, an amount equal to sixty-seven percent (67%) of the credit allowed.