Preliminary approval

(a)(1) The Arkansas Pollution Control and Ecology Commission recognizes that the waste reduction, reuse, or recycling equipment tax credit was enacted in part to stimulate economic development.

(2) In order to achieve this purpose, a taxpayer may ask the Director of the Division of Environmental Quality for preliminary approval regarding an anticipated purchase of waste reduction, reuse, or recycling equipment or construction of a waste reduction, reuse, or recycling project.

(b) In order to request preliminary approval for a potential tax credit, the taxpayer must do the following:

(1) At least thirty (30) days prior to purchasing any equipment or machinery which may, either individually or as part of a waste reduction, reuse, or recycling project, be eligible for a tax credit under this part, submit an application for preliminary approval and any other necessary forms to the Division of Environmental Quality; and

(2) The application for preliminary approval must contain the following:

(A) A narrative describing the project purpose and the product or products or service or services expected to be produced or provided;

(B) A brief description of each piece of waste reduction, reuse, or recycling equipment expected to be purchased;

(C) The expected costs to be incurred;

(D) The date waste reduction, reuse, or recycling equipment is expected to be purchased or the date a waste reduction, reuse, or recycling project is expected to become operational;

(E) The expected cost of installation; and
(F)(i) The signature of the taxpayer that will claim the credit if an individual, partner, or shareholder of a Subchapter S corporation.

(ii) In the case of a Subchapter C corporation, the treasurer or chief executive officer will sign the application.

(c) The director shall, within thirty (30) days of the receipt of a complete preliminary approval application, notify the taxpayer of his or her decision concerning tax credit eligibility.
(d)(1) The director may request any additional information from the taxpayer which he or she deems necessary to properly evaluate the taxpayer’s application.

(2) The division shall have ten (10) days to examine any requested information, regardless of the deadline imposed by subsection (c) of this section.

(3) The division shall have the right to inspect facilities and records in order to assist the director in his or her decision.

(e) For any items which the director preliminarily approves, the taxpayer shall timely submit an application for tax credit certification as otherwise required herein.

(f) In the event the taxpayer disagrees with any decision of the director concerning the preliminary approval process, the settlement and appeal sections of this part shall apply.