(a) There shall be allowed a credit against the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., to an approved applicant for agricultural land leveling to conserve irrigation water.(b)(1) The tax credit allowed to each approved applicant shall not exceed the lesser of twenty-five percent (25%) of the project cost incurred or thirty-five thousand dollars ($35,000).(2)(A) The amount of tax credit allowed to each approved applicant per project that may be used for a taxable year may not exceed the lesser of: (i) The amount of individual or corporate income tax otherwise due; or(ii) Eighteen thousand dollars ($18,000).(B) If the approved applicant is a pass-through entity such as a partnership, a limited liability company taxed as a partnership, a Subchapter S corporation, or a fiduciary, the amount of tax credit that may be used for a taxable year shall not exceed the lesser of: (i) The aggregate amount of individual or corporate income tax otherwise due by all members of the pass-through entity; or(ii) Eighteen thousand dollars ($18,000).(3) Any unused tax credit may be carried over for a maximum of fifteen (15) consecutive taxable years following the taxable year in the pass-through entity; or(ii) Eighteen thousand dollars ($18,000).(3) Any unused tax credit may be carried over for a maximum of fifteen (15) consecutive taxable years following the taxable year in which the credit originated.Amended by Act 2021, No. 875,§ 4, eff. for tax years beginning on or after January 1, 2021.Acts 1995, No. 341, § 10; 2011, No. 631, § 7. (a) There shall be allowed a credit against the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., to an approved applicant for agricultural land leveling to conserve irrigation water.(b)(1) The tax credit allowed to each approved applicant shall not exceed the lesser of twenty-five percent (25%) of the project cost incurred or thirty-five thousand dollars ($35,000).(2)(A) The amount of tax credit allowed to each approved applicant per project that may be used for a taxable year may not exceed the lesser of: (i) The amount of individual or corporate income tax otherwise due; or(ii) Eighteen thousand dollars ($18,000).(B) If the approved applicant is a pass-through entity such as a partnership, a limited liability company taxed as a partnership, a Subchapter S corporation, or a fiduciary, the amount of tax credit that may be used for a taxable year shall not exceed the lesser of: (i) The aggregate amount of individual or corporate income tax otherwise due by all members of the pass-through entity; or(ii) Eighteen thousand dollars ($18,000).(3) Any unused tax credit may be carried over for a maximum of fifteen (15) consecutive taxable years following the taxable year in the pass-through entity; or(ii) Eighteen thousand dollars ($18,000).(3) Any unused tax credit may be carried over for a maximum of fifteen (15) consecutive taxable years following the taxable year in which the credit originated.Amended by Act 2021, No. 875,§ 4, eff. for tax years beginning on or after January 1, 2021.Acts 1995, No. 341, § 10; 2011, No. 631, § 7.
Arkansas Legal Code