26 CAR § 130-104. County and Regional Industrial Development Corporation Act — Arkansas Code § 15-4-1224 [repealed]

(a) Income tax credit — Arkansas Code § 15-4-1224 [repealed].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(50% of tax liability) (b) Gain or loss upon sale or disposition of common stock — Arkansas Code § 15-4-1224 [repealed].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