The bill amends the Arkansas Wood Energy Products and Forest Maintenance Income Tax Credit to introduce a new income tax credit for wood energy products and forest maintenance expansion projects. Key changes include the addition of a definition for "qualified wood energy products and forest maintenance expansion project," which specifies criteria such as a minimum investment of $50 million, the creation of at least 100 new full-time permanent jobs with an average annual wage of at least $60,000, and a requirement for the project to support the Arkansas timber industry by utilizing low-value wood. The bill also updates existing definitions and provisions related to the tax credit, including the conditions under which tax credits can be claimed and transferred.

Additionally, the bill modifies the existing framework for tax credits by removing certain outdated references and expanding the eligibility criteria to include expansion projects. It establishes a timeline for project certification and investment, with a closing date for all facilities set before December 31, 2025. The effective date for the new provisions is set for tax years beginning on or after January 1, 2023. Overall, the bill aims to incentivize investment in the wood energy sector while ensuring job creation and economic benefits for the state.

Statutes affected:
HB 1779: 19-6-301, 26-51-2703(2), 26-51-2703(3), 26-51-2703(5), 26-51-2703, 26-51-2704(a), 26-51-2704(b)
Act 845: 19-6-301, 26-51-2703(2), 26-51-2703(3), 26-51-2703(5), 26-51-2703, 26-51-2704(a), 26-51-2704(b)