HB 1899 Summary

• Amends eligibility for equity investment incentive tax credits to include businesses receiving equity investments from capital investment funds targeting early-stage and start-up businesses that pay at least 150% of county or state average wage and meet at least two of six specified conditions.

• Changes governance of tax credit awards from sole discretion of the Director of the Arkansas Economic Development Commission to joint determination by the Director, President of the Arkansas Development Finance Authority, and President of the Arkansas Science and Technology Authority.

• Clarifies that tax credit awards begin in the tax year in which the equity interest was purchased and continue for a period not to exceed nine (9) years beyond that tax year, rather than commencing on or after the date of purchase.

• Specifies that only cash investments qualify for the equity investment incentive tax credit and requires businesses to sign equity investment incentive agreements with the Arkansas Economic Development Commission.

• Requires the three state authorities to jointly promulgate guidelines and rules to implement the equity investment incentive tax credit program.