This bill aims to enhance funding and incentives for waterway systems and related investments in Arkansas. It repeals the Arkansas River Navigation System Fund, which was previously established to support river transportation resources, and reallocates funding to the Arkansas Port, Intermodal, and Waterway Development Grant Program Fund. Additionally, the bill introduces a new income tax credit for capital improvements related to water transportation, allowing taxpayers to claim credits for investments made between January 1, 2024, and December 31, 2025.

The newly created tax credit, outlined in Section 3, permits a maximum credit of $3 million for eligible capital improvements, with a cumulative cap of $2.5 million for all taxpayers in a tax year. The credit is subject to a first-come, first-served basis and requires an economic benefit assessment by the Secretary of the Department of Commerce. Furthermore, any unused credits can be carried forward for up to nine years. The bill also mandates the Secretary of the Department of Finance and Administration to review the economic impact of this tax credit by 2030 and 2035, ensuring accountability and oversight of the program's effectiveness.

Statutes affected:
SB 386: 19-5-1264, 26-26-1616(d)