The Broadband Expansion and Efficiency Act aims to enhance broadband communications services in Arkansas by establishing a sales and use tax exemption for machinery and equipment utilized in the production of these services. The bill defines "broadband communications services" to include telecommunications, video programming, and internet access services, as well as any combination of these. It specifies the types of machinery and equipment eligible for the tax exemption, which includes a wide range of items such as wires, cables, antennas, routers, and diagnostic equipment, among others. However, personal consumer electronics and consumer-grade modems and Wi-Fi routers are explicitly excluded from this exemption.

Additionally, the bill amends the Arkansas Code to include a new section that outlines the specifics of the tax exemption, stating that the gross receipts or gross proceeds from the sale of the qualifying machinery and equipment will be exempt from both the gross receipts tax and the compensating use tax. The act will take effect on the first day of the calendar quarter following its enactment.