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Arkansas sunsets InvestArk Incentive Program; Provides exemption to manufacturers for repair and replacement parts

Arkansas has enacted legislation that is intended to simplify the taxation of in-state manufacturers by phasing out the InvestArk investment incentive program and enacting a sales and use tax exemption for the purchase of repair and partial replacement of manufacturing machinery and equipment. Effective July 1, 2017, Arkansas will no longer accept new InvestArk applications, but credits based on applications approved prior to this deadline will remain in effect. The legislation clarifies the existing procedure for claiming a refund of tax paid on qualifying purchases during the InvestArk sunset period.