§ 15-4-3103 - Definitions.
15-4-3103. Definitions.
As used in this subchapter:
(1) "Average hourly wage" means the weekly earnings, excluding overtime, bonuses, and company-paid benefits, of all new full-time permanent employees hired after the date of the signed financial incentive agreement, divided by the number of new full-time permanent employees, divided by forty (40);
(2) "County or state average hourly wage" means the weighted average weekly earnings for Arkansas residents in all industries, both statewide and countywide, as calculated by the Department of Workforce Services in its most recent "Annual Covered Employment and Earnings" publication, divided by forty (40);
(3) "Financial incentive agreement" means an agreement entered into by an eligible nonprofit organization and the Arkansas Economic Development Commission to provide the organization an incentive to locate or stay in Arkansas;
(4) "Governing authority" means the quorum court of a county or the governing body of a municipality;
(5) "Income" means the moneys received by a nonprofit organization for operations of the organization and includes donations, revenue from sales or memberships, grants, or legislative appropriations;
(6) (A) (i) "New full-time permanent employee" means a position or job that is:
(a) Created pursuant to the signed financial incentive agreement; and
(b) Filled by one (1) or more employees or contractual employees who were Arkansas taxpayers during the year in which the tax credits or incentives were earned.
(ii) The position or job held by the employee or employees shall have been filled for at least twenty-six (26) consecutive weeks with an average of at least thirty (30) hours per week.
(B) However, in order to qualify for the incentives authorized by this subchapter, a contractual employee shall be offered a benefits package comparable to that of a direct employee of the nonprofit organization seeking incentives under this subchapter;
(7) "Nonprofit organization" means an entity that has filed required documents with and been approved by the Secretary of State as having met the qualifications for a nonprofit organization in Arkansas and that also has received a 501(c)(3), 501(c)(6), or 501(c)(9) designation from the Internal Revenue Service prior to applying for the benefits afforded under this subchapter;
(8) "Payroll" means the total taxable wages, including overtime and bonuses, paid during the preceding tax year of the eligible nonprofit organization to new full-time permanent employees hired after the date of the signed financial incentive agreement;
(9) (A) "Project" means:
(i) Preconstruction costs, including project planning costs, architectural or engineering fees, right-of-way purchases, utility extensions, site preparations, purchase of mineral rights, building demolition, builders' risk insurance, capitalized start-up costs, deposits and process payments on eligible machinery and equipment, and other costs necessary to prepare for the start of construction;
(ii) Costs associated with the construction of a new plant or facility, including, but not limited to, land, building, production equipment, or support infrastructure;
(iii) Costs associated with the expansion of an established plant or facility by adding to the building, production equipment, or support infrastructure; or
(iv) Costs associated with modernization of an established plant or facility through the replacement of production or processing equipment or support infrastructure that improves efficiency or productivity.
(B) "Project" does not mean:
(i) Expenditures for routine repair and maintenance that do not result in new construction or expansion;
(ii) Routine operating expenditures;
(iii) Expenditures incurred at multiple facilities; or
(iv) The purchase or acquisition of an existing business unless there is sufficient documentation that the existing business was closed and the purchase of the existing business will result in the retention of the jobs that would have been lost due to the closure.
(C) In order to receive credit for or refunds related to project costs, the costs shall be incurred within four (4) years from the date the financial incentive agreement was signed by the commission.
(D) Routine operating expenditures are ineligible for benefits under this subchapter;
(10) "Project plan" means the plan submitted to the department containing such information as may be required by the Director of the Arkansas Economic Development Commission to determine eligibility for benefits, and if approved, it becomes a supplement to the financial incentive agreement; and
(11) "Start of construction" means any activity that causes a physical change to the building or property identified as the site of the approved project, excluding engineering surveys, soil tests, land clearing, and extension of roads and utilities to the project site.