County and Regional Industrial Development Corporation Act — Arkansas Code § 15-4-1224 [repealed]

# (a)

Income tax credit — Arkansas Code § 15-4-1224 [repealed].

# (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)

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)

# (b)

Gain or loss upon sale or disposition of common stock — Arkansas Code § 15-4-1224 [repealed].

# (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)

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

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