SB226 Summary

• Expands income tax credit to include cash donations to qualified educational institutions for purchasing new machinery and equipment, in addition to existing credits for direct donations and below-cost sales

• Defines "cost" for cash donations as the amount actually paid by the educational institution to wholesale, retail, or manufacturing businesses, as documented by itemized receipts

• Grants a 33% income tax credit for cash donations used by qualified educational institutions to purchase machinery and equipment from businesses

• Creates an application and approval process requiring taxpayers to submit applications to the Arkansas Economic Development Commission and sign a financial incentive agreement before claiming credits

• Denies tax credits for expenditures incurred before approval of the financial incentive agreement