The proposed bill seeks to amend Arkansas's taxation laws concerning lithium extraction and development. It includes lithium in the definitions of brine taxes and severance tax, while also introducing a sales and use tax exemption specifically for lithium resource development. Additionally, the bill expands the definition of "solid waste" to include electronic waste and lithium-ion battery cells, facilitating tax exemptions for equipment aimed at waste reduction, reuse, or recycling. The bill establishes criteria for tax exemptions for qualified firms, which must invest a minimum of $100 million and meet specific compensation requirements.

Moreover, the bill outlines a new allocation framework for severance tax revenues from salt water, designating 3% to the General Revenue Fund Account and 97% to the County Aid Fund, with quarterly remittances to county treasurers based on local production. It also sets tax rates for brine production at twenty cents per one thousand barrels for bromine or lithium extraction, with an additional ten cents per one thousand barrels. These changes are set to take effect on October 1, 2025.

Statutes affected:
Old version SB568 V2 - 4-1-2025 11:53 AM: 19-6-301(61), 26-51-506(b), 26-58-111(9), 26-58-124(a), 26-58-124, 26-58-301(b), 26-58-302(b)
Old version SB568 V3 - 4-8-2025 10:30 AM: 19-6-301(61), 26-51-506(b), 26-58-111(9), 26-58-301(b), 26-58-302(b)
Old version SB568 V4 - 4-9-2025 01:44 PM: 19-6-301(61), 26-51-506(b), 26-58-111(9), 26-58-124(a), 26-58-124, 26-58-301(b), 26-58-302(b)
Old version SB568 Original - 3-27-2025 08:55 AM: 19-6-301(61), 26-51-506(b), 26-58-111(9), 26-58-124(a), 26-58-124, 26-58-301(b), 26-58-302(b)
SB 568: 19-6-301(61), 26-51-506(b), 26-58-111(9), 26-58-124(a), 26-58-124, 26-58-301(b), 26-58-302(b)
Act 1012: 19-6-301(61), 26-51-506(b), 26-58-111(9), 26-58-124(a), 26-58-124, 26-58-301(b), 26-58-302(b)