§ 20-86-109 - Matching funds.
20-86-109. Matching funds.
(a) (1) Any individual, business, organization, or other entity may contribute matching funds to a fiduciary organization.
(2) The funds shall be designated to the fiduciary organization to allocate to participants who meet the requirements in 20-86-106.
(b) (1) A credit shall be allowed against the income tax liability imposed by the Income Tax Act of 1929, 26-51-101 et seq., for any Arkansas taxpayer who contributes to a fiduciary organization created pursuant to this subchapter in an amount equal to fifty percent (50%) of the amount of matching funds contributed to a fiduciary organization during the calendar year.
(2) The amount of the credit that may be used by a taxpayer for a taxable year shall not exceed the lesser of twenty-five thousand dollars ($25,000) or the amount of individual or corporate income tax otherwise due.
(c) Any unused credit may be carried over for a maximum of three (3) years up to a total tax credit allowed in the amount of twenty-five thousand dollars ($25,000).
(d) (1) (A) To claim the benefits of this section, a taxpayer must notify the fiduciary organization that the taxpayer intends to make a contribution and the amount of the contribution.
(B) The fiduciary organization shall then notify the Department of Workforce Services and request a certification from the department certifying the amount of the tax credit to which the taxpayer is entitled.
(C) The fiduciary organization shall deliver the certification to the taxpayer upon receipt of the contribution.
(2) A taxpayer must file the certificate with the taxpayer's income tax return for the first year in which the taxpayer claims a tax credit under this subchapter.
(e) The total amount of tax credits certified under this subchapter shall not exceed one hundred thousand dollars ($100,000) per calendar year.
(f) The Department of Finance and Administration shall promulgate any regulations necessary to carry out the provisions of this section.
(g) The Department of Workforce Services may monitor the use of these funds by fiduciary organizations.