The bill seeks to repeal various tax incentives in Arkansas that are considered unused or ineffective, including those related to centers for applied technology, the Arkansas Public Roads Improvements Credit Act, and incentives for major maintenance and improvement projects. It removes legal language concerning funding and operational guidelines for applied research partnerships between private industry and educational institutions, as well as the Public Roads Incentive Fund. The legislation reflects a significant shift in the state's approach to tax incentives, focusing on eliminating outdated provisions and streamlining the incentive process.

Additionally, the bill proposes amendments to the Consolidated Incentive Act of 2003, particularly concerning research and development tax credits and payroll rebates. It repeals certain sections related to these credits, introduces provisions for targeted businesses to carry forward unused income tax credits for up to nine years, and clarifies eligibility criteria. The bill also modifies the process for claiming credits or rebates, removing several stipulations and establishing a new effective date of October 1, 2025, to facilitate a more efficient tax system for Arkansas taxpayers.

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)