11.0404.1 Businesses operating under a tax exemption.

Cite as [A.S.C.A. 11.0404.1]

(a) All businesses having a tax exemption under 11.1601 et seq. shall claim the credits allowed by section 38 (relating to the investment tax credit), section 50A (relating to the credit for expenses of work incentive programs), and section 51 (relating to the credit for employment of certain new employees), in the year earned, without any carry over to other tax years, and shall depreciate property under the provisions of section 167 during the period of exemption, whether or not any taxable income is realized because of the tax exemption.

(b) A net operating loss sustained by a tax-exempt business during a taxable period will be allowed as an offset against income realized from other sources during the same period.

(c) If an excess of net operating loss (computed under subsection (b)), sustained during the tax exemption period exceeds the total income from the tax exempt business during the same period, the excess will be allowed as a carry-over subject to the provisions of section 172.

(d) The credit for foreign taxes under section 33 shall be allowed as a carry-back or carry-over only to the extent such credit, computed under section 901, exceeds the tax that would have been incurred except for the exemption granted under 11.1601 et seq.

History: 1980, PL 16-87 § 3.