AR SB480

Modifies Arkansas Code § 26-51-435 to allow nonresidents and part-year residents to deduct economic development tax credits from their calculated income tax liability after applying the income allocation percentage.

Expands eligibility for economic development tax credits to include 27 specific programs, including Advantage Arkansas, historic rehabilitation credits, apprenticeship programs, research and development credits, and tourism development credits.

Amends Arkansas Code § 26-51-919(d) to permit pass-through entities (partnerships, S-corporations, etc.) to apply economic development tax credits when calculating composite income tax returns.

Changes the calculation method for nonresidents and part-year residents to first compute tax liability before deducting most credits, with economic development credits applied after the income allocation percentage is calculated.

Effective for tax years beginning on or after January 1, 2020.