Arkansas 2025 Regular Session

Arkansas House Bill HB1657 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 709 of the Regular Session
3		-	JLL143 04-02-2025 10:14:20 JLL143
4		-
5		-	State of Arkansas As Engrossed: H4/2/25 1
	2	+	JLL143 03/04/2025 8:01:27 AM JLL143
	3	+	State of Arkansas 1
6	4		95th General Assembly A Bill 2
7	5		Regular Session, 2025 HOUSE BILL 1657 3
8	6		4
9		-	By: Representatives Beck, Achor, Andrews, Barker, Beaty Jr., Bentley, S. Berry, Breaux, M. Brown, Joey 5
10		-	Carr, Childress, Clowney, C. Cooper, Crawford, Eaton, Eaves, Eubanks, Furman, Gazaway, Gramlich, 6
11		-	Hall, Hawk, Holcomb, Hollowell, Jean, Magie, McClure, McGruder, S. Meeks, Milligan, K. Moore, 7
12		-	Painter, Perry, Pilkington, Richmond, Rye, Springer, Wardlaw, Warren, Wooten 8
13		-	By: Senators B. Davis, J. Dismang, J. English, Flippo, Gilmore, Hester, Irvin, B. Johnson, M. Johnson, 9
14		-	M. McKee, Rice, J. Scott, Stone 10
15		-	11
16		-	For An Act To Be Entitled 12
17		-	AN ACT TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND 13
18		-	FOREST MAINTENANCE INCOME TAX CREDIT; AND FOR OTHER 14
19		-	PURPOSES. 15
20		-	16
21		-	17
22		-	Subtitle 18
23		-	TO AMEND THE ARKANSAS WOOD ENERGY 19
24		-	PRODUCTS AND FOREST MAINTENANCE INCOME 20
25		-	TAX CREDIT. 21
26		-	22
27		-	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
28		-	24
29		-	SECTION 1. Uncodified Acts 2021, No. 594, § 2(7), concerning the 25
30		-	legislative findings for Acts 2021, No. 594, is amended to read as follows: 26
31		-	(7) In order to attract and maintain industry to use the 27
32		-	available fiber resources, support healthy timberland, encourage capital 28
33		-	investment in the Arkansas timber industry, and provide well-paying jobs, and 29
34		-	use wood byproducts for the production of energy, the creation of a logging 30
35		-	and wood fiber transportation job creation income tax credit should be 31
36		-	established. 32
	7	+	By: Representative Beck 5
	8	+	By: Senator B. Davis 6
	9	+	7
	10	+	For An Act To Be Entitled 8
	11	+	AN ACT TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND 9
	12	+	FOREST MAINTENANCE INCOME TAX CREDIT; AND FOR OTHER 10
	13	+	PURPOSES. 11
	14	+	12
	15	+	13
	16	+	Subtitle 14
	17	+	TO AMEND THE ARKANSAS WOOD ENERGY 15
	18	+	PRODUCTS AND FOREST MAINTENANCE INCOME 16
	19	+	TAX CREDIT. 17
	20	+	18
	21	+	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
	22	+	20
	23	+	SECTION 1. Uncodified Acts 2021, No. 594, § 2(7), concerning the 21
	24	+	legislative findings for Acts 2021, No. 594, is amended to read as follows: 22
	25	+	(7) In order to attract and maintain industry to use the 23
	26	+	available fiber resources, support healthy timberland, encourage capital 24
	27	+	investment in the Arkansas timber industry, and provide well-paying jobs, and 25
	28	+	use wood byproducts for the production of energy, the creation of a logging 26
	29	+	and wood fiber transportation job creation income tax credit should be 27
	30	+	established. 28
	31	+	29
	32	+	SECTION 2. Arkansas Code § 26 -51-2702 is amended to read as follows: 30
	33	+	26-51-2702. Legislative purpose and intent. 31
	34	+	The purpose and intent of this subchapter is to increase capacity in 32
	35	+	the state for the use of sawmill mill residuals, including sawdust and wood 33
	36	+	chips, wood byproducts, including bark, and thinnings to maintain a healthy 34
	37	+	forest, unwanted treetops, and damaged or diseased trees not wanted by 35
	38	+	sawmills. 36 HB1657
	39	+
	40	+	2 03/04/2025 8:01:27 AM JLL143
	41	+	1
	42	+	SECTION 3. Arkansas Code § 26 -51-2703(6) and (7), concerning the 2
	43	+	definitions to be used under the Arkansas Wood Energy Products and Forest 3
	44	+	Maintenance Income Tax Credit, are amended to read as follows: 4
	45	+	(6) “Qualified wood energy products and forest maintenance 5
	46	+	project” means a project specified in the incentive agreement to include one 6
	47	+	(1) or more Arkansas facilities in the same ownership group: 7
	48	+	(A) For which the taxpayer commenced construction by the 8
	49	+	date specified in the incentive agreement, but no earlier than January 1, 9
	50	+	2020; 10
	51	+	(B) That supports the Arkansas timber industry by using 11
	52	+	low-value wood, including without limitation sawmill mill residuals, forest 12
	53	+	thinnings, unwanted treetops, and damaged or diseased trees , and wood 13
	54	+	byproducts, including bark , to produce high-efficiency, high-energy wood 14
	55	+	energy products; 15
	56	+	(C) In which the taxpayer has a total projected investment 16
	57	+	in excess of fifty million dollars ($50,000,000) one billion dollars 17
	58	+	($1,000,000,000); 18
	59	+	(D) That is undertaken by a taxpayer who has entered into 19
	60	+	an incentive agreement with the State of Arkansas in which the taxpayer 20
	61	+	commits to creating at least one hundred (100) four hundred (400) net new 21
	62	+	full-time permanent employees with an average annual wage of at least sixty 22
	63	+	thousand dollars ($60,000); 23
	64	+	(E) That will provide a positive cost -benefit analysis to 24
	65	+	the state as determined by the commission and the Office of Economic Analysis 25
	66	+	and Tax Research; 26
	67	+	(F) That is certified as having a closing date before 27
	68	+	December 31, 2023 June 30, 2028, for all facilities, by which the taxpayer 28
	69	+	has certified and the state has verified that necessary capital acquisition 29
	70	+	and borrowing for the facilities has occurred to ensure that funds will be 30
	71	+	available to: 31
	72	+	(i) Secure a site for the facilities; 32
	73	+	(ii) Obtain engineering services for the facilities; 33
	74	+	(iii) Purchase equipment for the facilities; and 34
	75	+	(iv) Commence construction on the facilities; and 35
	76	+	(G) That is undertaken by a taxpayer that has elected by 36 HB1657
	77	+
	78	+	3 03/04/2025 8:01:27 AM JLL143
	79	+	agreement with the State of Arkansas for the taxpayer's facilities to be 1
	80	+	classified as a qualified wood energy products and forest maintenance 2
	81	+	project; and 3
	82	+	(7)(A) “Wood energy products equipment” means: 4
	83	+	(i) New or used machinery or equipment located in 5
	84	+	Arkansas on the last day of the taxable year that is operated or used 6
	85	+	exclusively in Arkansas to collect, separate, treat, pulverize, dry, modify, 7
	86	+	or convert wood fiber and wood byproducts, including bark, so the resulting 8
	87	+	product may be used as a raw material, for productive energy use, or to 9
	88	+	manufacture other materials; 10
	89	+	(ii) Devices that are directly connected with or are 11
	90	+	an integral and necessary part of machinery or equipment operated or used 12
	91	+	exclusively in Arkansas to collect, separate, treat, pulverize, dry, modify, 13
	92	+	or convert wood fiber and wood byproducts, including bark, and are necessary 14
	93	+	for the collection, separation, treatment, pulverization, drying, 15
	94	+	modification, or manufacturing of wood fiber; 16
	95	+	(iii) Equipment that produces energy with wood 17
	96	+	power; and 18
	97	+	(iv) A device that is directly connected with or is 19
	98	+	an integral and necessary part of machinery or equipment operated or used 20
	99	+	exclusively in Arkansas to produce energy with wood power. 21
	100	+	(B) “Wood energy products equipment” does not include a 22
	101	+	vehicle or trailer that is licensed or that normally would be licensed for 23
	102	+	use on highways in Arkansas. 24
	103	+	25
	104	+	SECTION 4. Arkansas Code § 26 -51-2704(a), concerning the Arkansas Wood 26
	105	+	Energy Products and Forest Maintenance Income Tax Credit, is amended to read 27
	106	+	as follows: 28
	107	+	(a) There is allowed a tax credit against the tax imposed by this 29
	108	+	chapter in an amount equal to thirty percent (30%) twenty percent (20%) of 30
	109	+	the costs of wood energy products equipment purchased for use in Arkansas 31
	110	+	after the date specified in the incentive agreement by a taxpayer that: 32
	111	+	(1) Is engaged in the business of collecting, separating, 33
	112	+	treating, pulverizing, drying, modifying, or manufacturing wood energy 34
	113	+	products and wood byproducts, including bark ; and 35
	114	+	(2) Has been certified as owning a qualified wood energy 36 HB1657
	115	+
	116	+	4 03/04/2025 8:01:27 AM JLL143
	117	+	products and forest maintenance project or a qualified wood energy products 1
	118	+	and forest maintenance expansion project. 2
	119	+	3
	120	+	SECTION 5. Arkansas Code § 26 -51-2704(b)(2)(B), concerning the 4
	121	+	Arkansas Wood Energy Products and Forest Maintenance Income Tax Credit, is 5
	122	+	amended to read as follows: 6
	123	+	(B) Beginning July 1, 2021 2026, and by July 15 of each 7
	124	+	subsequent year, a taxpayer shall provide notice to the Department of Finance 8
	125	+	and Administration of the amount of tax credits, including without limitation 9
	126	+	tax credits the taxpayer expects will receive certification during the fiscal 10
	127	+	year by the Department of Energy and Environment, subject to the limitation 11
	128	+	in subdivision (b)(1) of this section, that will be sold or transferred for 12
	129	+	value. 13
	130	+	14
	131	+	SECTION 6. Arkansas Code § 26 -51-2704(c)(7), concerning the Arkansas 15
	132	+	Wood Energy Products and Forest Maintenance Income Tax Credit, is amended to 16
	133	+	read as follows: 17
	134	+	(7) Beginning July 1, 2021 2026, by July 15 of each year, a 18
	135	+	public retirement system with possession and control of tax credits under 19
	136	+	this subsection shall provide notice to the Department of Finance and 20
	137	+	Administration of the amount of tax credits, including without limitation tax 21
	138	+	credits the public retirement system expects will receive certification 22
	139	+	during the fiscal year by the Department of Energy and Environment, subject 23
	140	+	to the limitations in subdivisions (c)(4) and (c)(5) of this section, to be 24
	141	+	sold or transferred for value. 25
	142	+	26
	143	+	SECTION 7. EFFECTIVE DATE. Sections 1 -6 of this act are effective for 27
	144	+	tax years beginning on or after January 1, 2026. 28
	145	+	29
	146	+	30
	147	+	31
	148	+	32
37	149		33
38		-	SECTION 2. Arkansas Code § 26 -51-2702 is amended to read as follows: 34
39		-	26-51-2702. Legislative purpose and intent. 35
40		-	The purpose and intent of this subchapter is to increase capacity in 36 As Engrossed: H4/2/25 HB1657
41		-
42		-	2 04-02-2025 10:14:20 JLL143
43		-
44		-
45		-	the state for the use of sawmill mill residuals, including sawdust and wood 1
46		-	chips, wood byproducts, including bark, and thinnings to maintain a healthy 2
47		-	forest, unwanted treetops, and damaged or diseased trees not wanted by 3
48		-	sawmills. 4
49		-	5
50		-	SECTION 3. Arkansas Code § 26 -51-2703(6) and (7), concerning the 6
51		-	definitions to be used under the Arkansas Wood Energy Products and Forest 7
52		-	Maintenance Income Tax Credit, are amended to read as follows: 8
53		-	(6) “Qualified wood energy products and forest maintenance 9
54		-	project” means a project specified in the incentive agreement to include one 10
55		-	(1) or more Arkansas facilities in the same ownership group: 11
56		-	(A) For which the taxpayer commenced construction by the 12
57		-	date specified in the incentive agreement, but no earlier than January 1, 13
58		-	2020; 14
59		-	(B) That supports the Arkansas timber industry by using 15
60		-	low-value wood, including without limitation sawmill mill residuals, forest 16
61		-	thinnings, unwanted treetops, and damaged or diseased trees , and wood 17
62		-	byproducts, including bark , to produce high-efficiency, high-energy wood 18
63		-	energy products; 19
64		-	(C) In which the taxpayer has a total projected investment 20
65		-	in excess of fifty million dollars ($50,000,000) one billion dollars 21
66		-	($1,000,000,000); 22
67		-	(D) That is undertaken by a taxpayer who has entered into 23
68		-	an incentive agreement with the State of Arkansas in which the taxpayer 24
69		-	commits to creating at least one hundred (100) four hundred (400) net new 25
70		-	full-time permanent employees with an average annual wage of at least sixty 26
71		-	thousand dollars ($60,000); 27
72		-	(E) That will provide a positive cost -benefit analysis to 28
73		-	the state as determined by the commission and the Office of Economic Analysis 29
74		-	and Tax Research; 30
75		-	(F) That is certified as having a closing date before 31
76		-	December 31, 2023 June 30, 2028, for all facilities, by which the taxpayer 32
77		-	has certified and the state has verified that necessary capital acquisition 33
78		-	and borrowing for the facilities has occurred to ensure that funds will be 34
79		-	available to: 35
80		-	(i) Secure a site for the facilities; 36 As Engrossed: H4/2/25 HB1657
81		-
82		-	3 04-02-2025 10:14:20 JLL143
83		-
84		-
85		-	(ii) Obtain engineering services for the facilities; 1
86		-	(iii) Purchase equipment for the facilities; and 2
87		-	(iv) Commence construction on the facilities; and 3
88		-	(G) That is undertaken by a taxpayer that has elected by 4
89		-	agreement with the State of Arkansas for the taxpayer's facilities to be 5
90		-	classified as a qualified wood energy products and forest maintenance 6
91		-	project; and 7
92		-	(7)(A) “Wood energy products equipment” means: 8
93		-	(i) New or used machinery or equipment located in 9
94		-	Arkansas on the last day of the taxable year that is operated or used 10
95		-	exclusively in Arkansas to collect, separate, treat, pulverize, dry, modify, 11
96		-	or convert wood fiber and wood byproducts, including bark, so the resulting 12
97		-	product may be used as a raw material, for productive energy use, or to 13
98		-	manufacture other materials; 14
99		-	(ii) Devices that are directly connected with or are 15
100		-	an integral and necessary part of machinery or equipment operated or used 16
101		-	exclusively in Arkansas to collect, separate, treat, pulverize, dry, modify, 17
102		-	or convert wood fiber and wood byproducts, including bark, and are necessary 18
103		-	for the collection, separation, treatment, pulverization, drying, 19
104		-	modification, or manufacturing of wood fiber; 20
105		-	(iii) Equipment that produces energy with wood 21
106		-	power; and 22
107		-	(iv) A device that is directly connected with or is 23
108		-	an integral and necessary part of machinery or equipment operated or used 24
109		-	exclusively in Arkansas to produce energy with wood power. 25
110		-	(B) “Wood energy products equipment” does not include a 26
111		-	vehicle or trailer that is licensed or that normally would be licensed for 27
112		-	use on highways in Arkansas. 28
113		-	29
114		-	SECTION 4. Arkansas Code § 26 -51-2704(a), concerning the Arkansas Wood 30
115		-	Energy Products and Forest Maintenance Income Tax Credit, is amended to read 31
116		-	as follows: 32
117		-	(a) There is allowed a tax credit against the tax imposed by this 33
118		-	chapter in an amount equal to thirty percent (30%) twenty percent (20%) of 34
119		-	the costs of wood energy products equipment purchased for use in Arkansas 35
120		-	after the date specified in the incentive agreement by a taxpayer that: 36 As Engrossed: H4/2/25 HB1657
121		-
122		-	4 04-02-2025 10:14:20 JLL143
123		-
124		-
125		-	(1) Is engaged in the business of collecting, separating, 1
126		-	treating, pulverizing, drying, modifying, or manufacturing wood energy 2
127		-	products and wood byproducts, including bark ; and 3
128		-	(2) Has been certified as owning a qualified wood energy 4
129		-	products and forest maintenance project or a qualified wood energy products 5
130		-	and forest maintenance expansion project. 6
131		-	7
132		-	SECTION 5. Arkansas Code § 26 -51-2704(b)(2)(B), concerning the 8
133		-	Arkansas Wood Energy Products and Forest Maintenance Income Tax Credit, is 9
134		-	amended to read as follows: 10
135		-	(B) Beginning July 1, 2021 2026, and by July 15 of each 11
136		-	subsequent year, a taxpayer shall provide notice to the Department of Finance 12
137		-	and Administration of the amount of tax credits, including without limitation 13
138		-	tax credits the taxpayer expects will receive certification during the fiscal 14
139		-	year by the Department of Energy and Environment, subject to the limitation 15
140		-	in subdivision (b)(1) of this section, that will be sold or transferred for 16
141		-	value. 17
142		-	18
143		-	SECTION 6. Arkansas Code § 26 -51-2704(c)(7), concerning the Arkansas 19
144		-	Wood Energy Products and Forest Maintenance Income Tax Credit, is amended to 20
145		-	read as follows: 21
146		-	(7) Beginning July 1, 2021 2026, by July 15 of each year, a 22
147		-	public retirement system with possession and control of tax credits under 23
148		-	this subsection shall provide notice to the Department of Finance and 24
149		-	Administration of the amount of tax credits, including without limitation tax 25
150		-	credits the public retirement system expects will receive certification 26
151		-	during the fiscal year by the Department of Energy and Environment, subject 27
152		-	to the limitations in subdivisions (c)(4) and (c)(5) of this section, to be 28
153		-	sold or transferred for value. 29
154		-	30
155		-	SECTION 7. EFFECTIVE DATE. Sections 1 -6 of this act are effective for 31
156		-	tax years beginning on or after January 1, 2026. 32
157		-	33
158		-	/s/Beck 34
159		-	APPROVED: 4/16/25 35
	150	+	34
	151	+	35
160	152		36