§ 26-51-1202
LexisNexis Practice Insights
Arkansas' Federal Non-Conformity with Net Operating Loss Carryforwards and Carrybacks for Corporations
26-51-1202. Certification required.
(a) To claim the benefits of 26-51-1201 -- 26-51-1203, a taxpayer must obtain a certification from the Director of the Arkansas Department of Economic Development certifying to the Revenue Division of the Department of Finance and Administration that the taxpayer:
(1) Operates a steel mill in Arkansas which began production after February 16, 1987; and
(2) Has invested, after February 16, 1987, in excess of one hundred twenty million dollars ($120,000,000) in the steel mill, which investment expenditure is for one (1) of the following:
(A) Property purchased for use in the construction of a building or buildings or any addition or improvement thereon to house the steel mill;
(B) Machinery and equipment to be located in or in connection with the steel mill. Motor vehicles of a type subject to registration shall not be considered as machinery and equipment; or
(C) Project planning costs or construction labor costs, including on-site direct labor and supervision, whether employed by a contractor or the project owner; architectural fees, engineering fees, or both; right-of-way purchases; utility extensions; site preparation; parking lots; disposal or containment systems; water and sewer treatment systems; rail spurs; streets and roads; purchase of mineral rights; land; buildings; building renovation; production, processing, and testing equipment; freight charges; building demolition; material handling equipment; drainage systems; water tanks and reservoirs; storage facilities; equipment rental; contractor's cost plus fees; builders risk insurance; original spare parts; job administrative expenses; office furnishings and equipment; rolling stock; capitalized start-up costs as recognized by generally accepted accounting principles; and other costs related to the construction.
(b) "Production and processing equipment", as used in subdivision (a)(2)(C) of this section, includes machinery and equipment essential for the receiving, storing, processing, and testing of raw materials and the production, storage, testing, and shipping of finished products, including facilities for the production of steam, electricity, chemicals, and other materials that are essential to the manufacturing process, but which are consumed in the manufacturing process and do not become essential components of the finished product.