AR HB1985

Creates new section 26-51-1015 allowing income tax credits under the Water Resource Conservation and Development Incentives Act to be transferred from the original approved applicant to other parties.

Requires transferees to obtain and attach a certified statement from the transferor to their income tax return listing the original purchaser, all transferees, tax identification numbers, original approval date, credit amounts, and remaining available credit.

Establishes that transferees are subject to carry-over provisions based on the taxable year the original credit was approved and are not liable for repayment if the original transferor fails to complete or maintain the project.

Requires the original transferor to refund any unused credits to the Department of Finance and Administration if the project is not completed or maintained for the required number of years.

Mandates that credit transfers be perfected by notifying the Department of Finance and Administration in writing within 30 calendar days of the transfer date, effective for tax years beginning January 1, 2020.