The bill amends the Consolidated Incentive Act of 2003 to introduce a new "modernization and automation tax credit" aimed at encouraging investment by existing businesses in Arkansas. Key changes include the definition of "project costs," which now allows eligible costs to be incurred within four years or six years for projects qualifying for the new tax credit. The bill also specifies that applications for this tax credit must be submitted before incurring project costs, and only costs incurred after the commission's approval of the application will be eligible. Additionally, the bill outlines requirements for the financial incentive agreement, including project completion timelines and maintaining payroll and employment levels.

Further amendments include increasing the minimum investment threshold from $5 million to $25 million for businesses to qualify for the tax credit, and establishing a maximum credit of $2 million that can be claimed in a fiscal year. The bill also clarifies that the modernization and automation tax credit cannot be combined with other tax credits for the same project. The effective date for these changes is set for October 1, 2025.

Statutes affected:
Old version HB1935 V2 - 4-8-2025 09:41 AM: 15-4-2703(29), 15-4-2706(c), 15-4-2712(b), 15-4-3501(g)
Old version HB1935 Original - 3-31-2025 04:15 PM: 15-4-2703(29), 15-4-2706(c), 15-4-2712(b), 15-4-3501(g)
HB 1935: 15-4-2703(29), 15-4-2706(c), 15-4-2712(b), 15-4-3501(g)
Act 882: 15-4-2703(29), 15-4-2706(c), 15-4-2712(b), 15-4-3501(g)