Ark. Code R. 26-51-423 - 1(b) (1997) - Travel and Entertainment

For tax years beginning before 01/01/95, IRC Section274 as in effect 01/01/89 shall apply. For tax years beginning on or after 01/01/95, IRC Section274 as in effect 01/01/95 shall apply.

Eighty percent (80%) of qualified expenses will be allowed in tax years beginning before 01/01/95, and 50% of qualified expenses will be allowed in tax years beginning on or after 01/01/95. For tax years beginning on or after 01/01/97, IRC Section274 as in effect on 01/01/97 shall apply. The percentage will gradually rise beginning in 1998 as set forth below:

For taxable years beginning in

The applicable calendar year - percentage is -

1998 or 1999

55%

2000 or 2001

60%

2002 or 2003

65%

2004 or 2005

70%

2006 or 2007

75%

2008 or thereafter

80%