AR HB1768

Creates a nonrefundable income tax credit equal to 10% of qualified investments in small Arkansas-based high-technology businesses made in the initial year or within three subsequent taxable years.

Defines qualifying businesses as those employing new or state-of-the-art technology in biotechnology, pharmaceuticals, clean energy, defense, medical devices, information technology, and other emerging technology fields, with principal place of business in Arkansas and fewer than 225 employees (75% Arkansas-based).

Limits annual tax credits to $50,000 per taxpayer and $1,500,000 statewide per tax year, with unused credits carried forward indefinitely.

Requires taxpayers to repay all claimed credits if the funded business relocates out of Arkansas during the three-year credit period.

Effective for tax years beginning January 1, 2017.