The bill amends the Arkansas Wood Energy Products and Forest Maintenance Income Tax Credit to enhance the state's capacity for utilizing wood resources and to support the timber industry. Key changes include the insertion of language to attract and maintain industry, as well as the establishment of a logging and wood fiber transportation job creation income tax credit. The definition of qualified wood energy products has been expanded to include wood byproducts and to specify that projects must involve a projected investment of over one billion dollars and create at least 400 new full-time jobs with a minimum average wage of $60,000.

Additionally, the tax credit percentage for wood energy products equipment has been reduced from 30% to 20%, and the timeline for providing notice of tax credits has been adjusted to begin in 2026 instead of 2021. The bill also clarifies that wood energy products equipment includes machinery used to process wood fiber and byproducts, while excluding vehicles typically licensed for highway use. The effective date for these amendments is set for tax years beginning on or after January 1, 2026.

Statutes affected:
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)
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)
SB 530: 26-51-2702, 26-51-2703(6), 26-51-2704(a), 26-51-2704(b), 26-51-2704(c)