Project termination

(a)(1) If the approved applicant terminates the project prior to expiration of the minimum project life, the approved applicant shall provide written notification to the:

(A) Director of the Arkansas Natural Resources Commission; and

(B) Department of Finance and Administration.

(2) In addition, the approved applicant shall:

(A) File an amended tax return; and

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

(b) If the director determines that the approved applicant has terminated the project, he or she shall notify the department.

(c) Upon the termination of a project, the:

(1) Approved applicant shall not be allowed any further tax credits provided in the Water Resource Conservation and Development Incentives Act, Arkansas Code § 26-51-1001 et seq.; and

(2) Department shall recapture the pro rata share of any tax credits claimed under the Water Resource Conservation and Development Incentives Act for the period of termination.

(d) The pro rata share for 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.

(e) Under the Water Resource Conservation and Development Incentives Act, the department may make necessary assessments to recapture disallowed tax credits for three (3) years from the date of expiration of the minimum life of the project.