014.03.04 Ark. Code R. § 001

• Library: Arkansas Administrative Code
• Edition: 2023
• Currency: Current through Register Vol. 48, No. 12, December, 2023
• Citation: 014.03.04 Ark. Code R. § 001
• Year: 2023

CHAPTER I BGENERAL PROVISIONS

Reg. 16.101 Effective Date This regulation shall be effective ten (10) days after filing the same with the Secretary of State, State Library, and Bureau of Legislative Research following adoption by the Commission.

Reg. 16.102 Purpose This regulation is promulgated pursuant to Ark. Code Ann. ' 26Tax credit for waste reduction, reuse, or recycling equipment - Eligibility26-51-506 which provides for an income tax credit, as well as recapture of the credit in certain instances, as an incentive for taxpayers to engage in waste reduction reuse, or recycling activities including the use of post-consumer recyclables generated in Arkansas.

Reg 16.103 Definitions For the purposes of this regulation, unless otherwise stated herein, the following definitions apply: (A) ACost,@ in the case of a transfer of title or a finance lease, means the amount of the purchase price, and, in the case of a lease which is not a finance lease but which otherwise qualifies as a purchase under this regulation, means the amount of the lease payments due to be paid during the term of the lease after deducting any portion of the lease payments attributable to interest, insurance, and taxes; (B) ADepartment@ means the Arkansas Department of Environmental Quality; (C) ADirector@ means the director of the Arkansas Department of Environmental Quality; (D) AEquipment to service waste reduction reuse, or recycling equipment@ means expenditures, machinery, or equipment that keeps existing machinery or equipment in running order by providing repair maintenance, adjustment, inspection, or supplies; (E) AFinance lease@ means a lease agreement which is treated as a purchase by a lessee for Arkansas income tax purposes; (F) AFor commercial purposes@ means collecting, separating, processing, modifying, converting, or treating solid waste other than waste that is self-generated; (G) AHome scrap@ means materials or by-products generated from and commonly reused within an original manufacturing process; (H) AMaintenance@ means expenditures, machinery, or equipment used to keep existing machinery or equipment in a condition that approaches or equates to its original condition; (I) AMotor vehicle@ means a vehicle or trailer that is licensed, or that normally would be licensed, for use on highways in Arkansas; (J) APost-consumer waste@ means waste materials generated by a business, governmental entity, or consumer which have served their intended end use and have been recovered from or otherwise diverted from the solid waste stream for the purpose of recycling. This term does not include home scrap and pre-consumer materials. (K) APre-consumer material@ means waste material generated during any step in the production of a product and recovered or otherwise diverted from the solid waste stream for the purpose of recycling but does not include home scrap; (L) AProject start up@ means the first day a waste reduction, reuse, or recycling project begins collecting, separating processing, modifying, converting, or treating solid waste or manufacturing products containing recovered materials, as applicable; (M) APurchase@ means a transaction under which title and possession to an item is transferred for valuable consideration, or a finance lease contract or finance lease transaction for a period of at least three (3) years regardless of whether title to the item is transferred at the end of such period; (N) ARecovered materials@ means those materials which have been separated, diverted, or removed from the waste stream for the purpose of recycling and includes pre-consumer material and post-consumer waste but not home scrap; (O) ARecycling@ means the systematic collecting, sorting, decontaminating, and returning of waste materials to commerce as commodities for use or exchange; (P) ARepair@ means expenditures, machinery, or equipment used to restore existing machinery or equipment to its original or similar condition and capacity after damage or after deterioration from use; (Q) ASolid waste@ means all putrescible and nonputrescible wastes in solid or semisolid form, including, but not limited to, yard or food waste, waste glass, waste metals, waste plastics, waste papers, waste paperboard, and all other solid or semisolid wastes resulting from industrial, commercial, agricultural, community, and residential activities; (R) AWaste reduction, reuse, or recycling equipment@ means new or used machinery or equipment located and operating in Arkansas on the last day of the taxable year which is operated or used exclusively in Arkansas to collect, separate, process, modify, convert, or treat solid waste so that the resulting product may be used as a raw material or for productive use or to manufacture products containing recovered materials. The term also includes devices which are directly connected with or are an integral and necessary part of such machinery or equipment and are necessary for such collection, separation, processing, modification, conversion, treatment,...