Honda has asked Arkansas’ appellate court not to show deference to the state’s tax agency and to reverse the denial of a tax refund for income from sales of federal environmental credits to other car manufacturers.

In a reply brief filed Monday, American Honda Motor Co. Inc. told the Arkansas Court of Appeals that the state Department of Finance and Administration wrongly deemed income from credit sales as taxable business income attributable to the state. Furthermore, Honda said, under two state laws, the department’s decision was not entitled to deference.

Read the full article here.