The bill seeks to repeal various tax incentives in Arkansas that are considered unused or underused, including those related to applied technology centers, the Arkansas Public Roads Improvements Credit Act, and incentives for major maintenance projects. It removes specific legal language from the Arkansas Code that outlines funding and operational guidelines for applied research partnerships and eliminates the Public Roads Incentive Fund. The legislation reflects a significant reduction in state-sponsored tax incentives aimed at economic development and research collaboration.

Additionally, the bill amends provisions related to tax credits and incentives for businesses, particularly focusing on job creation and investment tax credits. It repeals existing provisions governing the conditions for technology-based enterprises to earn tax credits and introduces new language allowing the Department of Finance and Administration two years to collect incentives from businesses that do not meet payroll thresholds. The bill also clarifies eligibility and application processes for income tax credits, allowing targeted businesses to claim a credit for in-house research expenditures while ensuring that multiple credits are not claimed for the same expenditures. Overall, the bill aims to streamline the tax incentive structure and enhance the efficiency of tax administration in Arkansas.

Statutes affected:
HB 1521: 15-3-110(c), 15-3-130, 15-3-135, 15-3-131, 15-3-134, 15-3-132, 15-3-133, 25-16-901, 15-4-2705(h), 15-4-2706(b), 15-4-2706(d), 15-4-2707(e), 15-4-2708(a), 15-4-2708(b), 15-4-2709, 15-4-2703, 15-4-2708, 15-4-2711(c), 15-4-2712, 15-4-2706(c), 15-4-2706(e), 15-4-2705, 15-4-2707, 19-5-1097, 26-52-402(c), 26-52-447, 26-52-301, 26-52-302, 26-52-402(b), 26-52-402, 26-53-114, 26-18-306, 26-52-509(a)