The bill amends the Arkansas Wood Energy Products and Forest Maintenance Income Tax Credit to enhance the state's timber industry and promote the use of wood byproducts for energy production. Key changes include the addition of language to attract and maintain industry, support healthy timberland, and encourage capital investment. The definition of qualified wood energy products and forest maintenance projects is expanded to include wood byproducts and to raise the minimum investment requirement from $50 million to $1 billion. Additionally, the number of required new full-time permanent employees is increased from 100 to 400, and the deadline for project certification is extended to June 30, 2028.

Furthermore, the tax credit percentage for costs associated with wood energy products equipment is reduced from 30% to 20%. The bill also establishes new reporting requirements for taxpayers and public retirement systems regarding the amount of tax credits expected to be certified and sold or transferred. The effective date for these changes is set for tax years beginning on or after January 1, 2026.

Statutes affected:
Old version SB530 V2 - 4-1-2025 12:30 PM: 26-51-2702, 04-01-2025, 26-51-2703(6), 26-51-2704(a), 26-51-2704(b), 26-51-2704(c)
Old version SB530 Original - 3-19-2025 06:45 PM: 26-51-2702, 26-51-2703(6), 26-51-2704(a), 26-51-2704(b), 26-51-2704(c)
SB 530: 26-51-2702, 26-51-2703(6), 26-51-2704(a), 26-51-2704(b), 26-51-2704(c)
Act 701: 26-51-2702, 04-01-2025, 26-51-2703(6), 26-51-2704(a), 26-51-2704(b), 26-51-2704(c)