HB1832 - The New Markets Jobs Act of 2013

• Creates a state tax credit program against premium tax liability for qualified equity investments in community development entities that invest in low-income Arkansas businesses

• Establishes a certification process through the Arkansas Economic Development Commission with a $166 million cap on total qualified equity investments; applicants must pay a $5,000 nonrefundable fee plus 0.5% performance fee

• Tax credits are calculated using applicable percentages (0% for first two credit allowance dates, 12% for third-fifth dates, 11% for sixth-seventh dates) multiplied by the investment purchase price, with credits non-refundable but transferable to partners, members, or shareholders

• Requires community development entities to invest at least 85% of qualified equity investment proceeds into qualified low-income community businesses in Arkansas within one year and maintain compliance through seven-year holding period, with recapture provisions for federal recapture or early redemption

• Establishes the New Markets Performance Guarantee Fund to hold performance fees and creates reporting requirements including revenue impact assessments for proposed investments and annual compliance reports by community development entities