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 establishment of a logging and wood fiber transportation job creation income tax credit, and the expansion of the definition of qualified wood energy products to include wood byproducts for energy production. The bill also raises the minimum investment requirement for qualifying projects from $50 million to $1 billion and increases the number of required new full-time jobs from 100 to 400, with a specified average annual wage.

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. These changes aim to support the Arkansas timber industry while ensuring a positive cost-benefit analysis for the state.

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)