Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 94th General Assembly A Bill
3 Regular Session, 2023 SENATE BILL 386
4
5 By: Senator J. Dismang
6
7 For An Act To Be Entitled
8 AN ACT CONCERNING FUNDING AND INCENTIVES FOR CERTAIN
9 WATERWAYS SYSTEMS, PROGRAMS, AND INVESTMENTS; TO
10 REPEAL THE ARKANSAS RIVER NAVIGATION SYSTEM FUND; TO
11 PROVIDE ADDITIONAL FUNDING FOR THE ARKANSAS PORT,
12 INTERMODAL, AND WATERWAY DEVELOPMENT GRANT PROGRAM
13 FUND; TO CREATE IN INVESTMENT TAX CREDIT FOR CAPITAL
14 IMPROVEMENTS RELATING TO WATER TRANSPORTATION IN THE
15 STATE; AND FOR OTHER PURPOSES.
16
17
18 Subtitle
19 TO REPEAL THE ARKANSAS RIVER NAVIGATION
20 SYSTEM FUND; TO PROVIDE ADDITIONAL
21 FUNDING FOR THE ARKANSAS PORT,
22 INTERMODAL, AND WATERWAY DEVELOPMENT
23 GRANT PROGRAM FUND; AND TO CREATE A
24 WATERWAYS INVESTMENT INCOME TAX CREDIT.
25
26
27 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
28
29 SECTION 1. Arkansas Code § 19-5-1264 is repealed.
30 19-5-1264. Arkansas River Navigation System Fund.
31 (a) There is created on the books of the Treasurer of State, the
32 Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous
33 fund to be known as the “Arkansas River Navigation System Fund”.
34 (b) The fund shall consist of:
35 (1) The taxes and penalties described in § 26-26-1616(d)(2);
36 (2) Grants made by any person or federal government agency;
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1 (3) Any remaining fund balances carried forward from year to
2 year; and
3 (4) Any other funds authorized or provided by law.
4 (c) The fund shall be used by the Arkansas Waterways Commission to
5 develop, improve, and expand river transportation resources within the
6 portion of the McClellan-Kerr Arkansas River Navigation System located in the
7 State of Arkansas.
8
9 SECTION 2. Arkansas Code § 26-26-1616(d)(2), concerning the
10 disposition of ad valorem taxes and penalties collected from water
11 transportation companies, is amended to read as follows:
12 (2) Any taxes and penalties collected in excess of two million
13 five hundred fifty thousand dollars ($2,550,000) each calendar year shall be
14 deposited as follows:
15 (A) Seventy percent (70%) shall be credited to the
16 Arkansas River Navigation System Fund; and
17 (B) Thirty percent (30%) shall be credited to the Arkansas
18 Port, Intermodal, and Waterway Development Grant Program Fund to be used
19 exclusively for the purposes stated in § 15-23-205.
20
21 SECTION 3. Arkansas Code Title 26, Chapter 51, Subchapter 5, is
22 amended to add an additional section to read as follows:
23 26-51-517. Waterways investment tax credit.
24 (a) There is allowed an income tax credit against the income tax
25 imposed by this chapter in the amount stated in subsection (b) of this
26 section for the cost of making capital improvements to a facility or property
27 related to using water transportation in the state, including without
28 limitation the construction, improvement, capital facility rehabilitation,
29 and expansion of a waterway facility and the construction or improvement of
30 rail or road access to a waterway facility, on or after January 1, 2024, and
31 on or before December 31, 2025.
32 (b)(1) Except as otherwise provided in this subsection, the tax credit
33 allowed under subsection (a) of this section shall not exceed three million
34 dollars ($3,000,000) for a taxpayer that makes the capital improvements to a
35 facility or property related to using water transportation in the state.
36 (2) The amount of the tax credit that a taxpayer may claim each
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1 year is limited to a maximum of ten percent (10%) of the total tax credit for
2 which the taxpayer is eligible.
3 (3) The total cumulative amount of tax credits for all taxpayers
4 under this section in a tax year shall:
5 (A) Not exceed two million five hundred thousand dollars
6 ($2,500,000); and
7 (B) Be issued on a first-come, first served basis.
8 (4) A tax credit allowed under this section shall be issued only
9 after the Secretary of the Department of Commerce has determined, based on
10 the information provided by the applicant for a tax credit under this
11 section, that the taxpayer's capital investment in a facility or property
12 related to using water transportation in the state will provide an economic
13 benefit to the state that will likely be equal to or greater than the amount
14 of the tax credit allowed under this section.
15 (c) Any unused income tax credit that cannot be claimed in a tax year
16 because of the limit stated in subdivision (b)(2) of this section may be
17 carried forward for nine (9) consecutive tax years following the tax year in
18 which the income tax credit was earned.
19 (d) A taxpayer is not eligible for the credit allowed under this
20 section if the taxpayer has received funds under the Arkansas Port,
21 Intermodal, and Waterway Development Grant Program.
22 (e) The Secretary of the Department of Finance and Administration
23 shall:
24 (1) Promulgate rules to implement this section;
25 (2) Review the overall economic impact of this section on or
26 before December 31, 2030, and again on or before December 31, 2035; and
27 (3) Report his or her findings under subdivision (e)(2) of this
28 section to the Legislative Council or, if the General Assembly is in session,
29 to the Joint Budget Committee within thirty (30) days of completing the
30 required review.
31
32 SECTION 4. EFFECTIVE DATE. Section 3 of this act is effective for tax
33 years beginning on or after January 1, 2024.
34
35
36
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Statutes affected:
SB 386: 19-5-1264, 26-26-1616(d)