The bill amends the Arkansas Wood Energy Products and Forest Maintenance Income Tax Credit to enhance the state's timber industry by attracting and maintaining industry use of available fiber resources. Key changes include the addition of provisions to support the use of wood byproducts for energy production and the establishment of a logging and wood fiber transportation job creation income tax credit. The bill also updates the definitions of qualified projects and equipment, increasing the required investment threshold from $50 million to $1 billion and the number of new full-time jobs created from 100 to 400.

Additionally, the tax credit percentage for wood energy products equipment is reduced from 30% to 20%, and the timeline for providing notice of tax credits to the Department of Finance and Administration is extended to begin in 2026. The effective date for these amendments is set for tax years starting on or after January 1, 2026. Overall, the bill aims to bolster the Arkansas timber industry while ensuring a positive cost-benefit analysis for the state.

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)
Act 701: 26-51-2702, 04-01-2025, 26-51-2703(6), 26-51-2704(a), 26-51-2704(b), 26-51-2704(c)