Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
 1   State of Arkansas
 2   93rd General Assembly                        A Bill
 3   Regular Session, 2021                                                             SENATE BILL 356
 4
 5   By: Senator D. Wallace
 6
 7                                     For An Act To Be Entitled
 8                  AN ACT TO AMEND THE LAW GOVERNING THE INCOME TAX
 9                  CREDIT FOR WASTE REDUCTION, REUSE, OR RECYCLING
10                  EQUIPMENT; TO AMEND THE DEFINITION OF QUALIFIED
11                  SPECIALTY STEEL PRODUCTS MANUFACTURING FACILITY; AND
12                  FOR OTHER PURPOSES.
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15                                                 Subtitle
16                           TO AMEND THE LAW GOVERNING THE INCOME TAX
17                           CREDIT FOR WASTE REDUCTION, REUSE, OR
18                           RECYCLING EQUIPMENT; AND TO AMEND THE
19                           DEFINITION OF QUALIFIED SPECIALTY STEEL
20                           PRODUCTS MANUFACTURING FACILITY.
21
22
23   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
24
25          SECTION 1.        Arkansas Code  26-51-506(b)(11), concerning the
26   definitions used for the income tax credit for waste reduction, reuse, or
27   recycling equipment, is amended to read as follows:
28                  (11)      Qualified steel specialty products manufacturing facility
29   means a facility:
30                            (A)   For which the taxpayer commenced construction on or
31   after January 1, 2017 2021;
32                            (B)   That is located in Arkansas;
33                            (C)   That melts scrap steel in an electric arc or similar
34   furnace to produce one (1) or more specialty steel products, including
35   without limitation billets, structural shapes, reinforcing bars, coiled
36   reinforcing bars, wire rods, and merchant bars;
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                                                                                  SB356
 1                     (D)   In which the taxpayer has a total investment in excess
 2   of two hundred million dollars ($200,000,000);
 3                     (E)   That is undertaken by a taxpayer that has entered into
 4   an agreement with the State of Arkansas in which the taxpayer made a
 5   commitment to create at least one hundred fifty (150) net new direct
 6   positions and independent direct positions as those terms are defined in Acts
 7   2013, No. 1084,  8, with an average annual wage of at least seventy-five
 8   thousand dollars ($75,000);
 9                     (F)   That provides a positive cost-benefit analysis to the
10   state as determined by the Arkansas Economic Development Commission and the
11   Office of Economic Analysis and Tax Research before an incentive agreement
12   between the state and the taxpayer is executed;
13                     (G)   That is certified as having a closing date before July
14   1, 2018 2023, by which the taxpayer has certified and the state has verified
15   that necessary capital acquisition and borrowing for the qualified steel
16   specialty products manufacturing facility has occurred to:
17                            (i)     Secure a site;
18                            (ii)    Obtain engineering services;
19                            (iii)    Purchase equipment; and
20                            (iv)    Commence initial construction; and
21                     (H)   That is undertaken by a taxpayer that has elected by
22   agreement with the State of Arkansas for the facility to be classified as a
23   qualified steel specialty products manufacturing facility under this section;
24
25        SECTION 2.   Arkansas Code  26-51-506(c)(3)(D)(iii)(c), concerning tax
26   credits in the possession and control of a public retirement system in
27   connection with the tax credit for waste reduction, reuse, or recycling
28   equipment, is amended to read as follows:
29                                    (c)   No more than the following amounts of the
30   tax credits in possession and control of the public retirement system with
31   respect to a qualified expansion project qualified steel specialty products
32   manufacturing facility pursuant to subdivision (c)(3)(D)(i) of this section
33   may be sold or transferred each year:
34                                          (1)   For a total investment in the
35   qualified steel specialty products manufacturing facility of at least two
36   hundred million dollars ($200,000,000) but less than two hundred seventy-five
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                                                                                 SB356
 1   million dollars ($275,000,000), four million dollars ($4,000,000);
 2                                         (2)   For a total investment in the
 3   qualified steel specialty products manufacturing facility of at least two
 4   hundred seventy-five million dollars ($275,000,000) but less than three
 5   hundred fifty million dollars ($350,000,000), five million dollars
 6   ($5,000,000); and
 7                                         (3)   For a total investment in the
 8   qualified steel specialty products manufacturing facility of at least three
 9   hundred fifty million dollars ($350,000,000), six million five hundred
10   thousand dollars ($6,500,000).
11
12        SECTION 3.     EFFECTIVE DATE.   Sections 1 and 2 of this act are effective
13   for tax years beginning on or after January 1, 2021.
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Statutes affected: 
SB 356: 26-51-506(b), 26-51-506(c)