Tax consequences

(a) Upon termination of the project, the taxpayer shall not be allowed any further tax credits provided under the Arkansas Private Wetland and Riparian Zone Creation, Restoration, and Conservation Tax Credits Act, Arkansas Code § 26-51-1501 et seq., and the Department of Finance and Administration shall recapture the pro rata share of any tax credits claimed under the Arkansas Private Wetland and Riparian Zone Creation, Restoration, and Conservation Tax Credits Act for the period of termination.

(b) The pro rata share of recapture of the disallowed tax credits shall be determined by dividing the period of time from termination of the project until the expiration of the minimum life of the project by the required minimum life of the project times the tax credit claimed.
(c)(1) If the taxpayer terminates the project after the completion period but prior to expiration of the minimum project life, the taxpayer shall provide written notification to the Department of Agriculture and the Department of Finance and Administration prior to termination.

(2) In addition, the taxpayer shall:

(A) File an amended tax return within thirty (30) days of termination; and

(B) Repay the amount of tax credit claimed that was not allowable.

(d) Any failure of the taxpayer to comply with the filing and required repayment of taxes will result in an assessment by the Department of Finance and Administration according to the Arkansas Tax Procedure Act, Arkansas Code § 26-18-101 et seq.