Arkansas 2025 Regular Session

Arkansas House Bill HB1702 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Stricken language would be deleted from and underlined language would be added to present law.
2	2	JLL207 03/05/2025 12:40:46 PM JLL207
3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 HOUSE BILL 1702 3
6	6	4
7	7	By: Representative Wooldridge 5
8	8	By: Senator J. Petty 6
9	9	7
10	10	For An Act To Be Entitled 8
11	11	AN ACT TO AMEND THE SALES AND USE TAX EXEMPTIONS FOR 9
12	12	CERTAIN MACHINERY AND EQUIPMENT USED IN 10
13	13	MANUFACTURING; TO PROVIDE A SALES AND USE TAX 11
14	14	EXEMPTION FOR MACHINERY AND EQUIPMENT USED IN CLOSED -12
15	15	LOOP RECYCLING; AND FOR OTHER PURPOSES. 13
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17	17	15
18	18	Subtitle 16
19	19	TO AMEND THE SALES AND USE TAX 17
20	20	EXEMPTIONS FOR CERTAIN MACHINERY AND 18
21	21	EQUIPMENT USED IN MANUFACTURING; AND TO 19
22	22	PROVIDE A SALES AND USE TAX EXEMPTION 20
23	23	FOR MACHINERY AND EQUIPMENT USED IN 21
24	24	CLOSED-LOOP RECYCLING. 22
25	25	23
26	26	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
27	27	25
28	28	SECTION 1. Arkansas Code § 26-52-402(c)(2)(B), concerning the 26
29	29	machinery and equipment that is included in the list of machinery and 27
30	30	equipment that is used directly in the manufacturing process for purposes of 28
31	31	the sales tax exemption on certain machinery and equipment, is amended to add 29
32	32	an additional subdivision to read as follows: 30
33	33	(vii)(a) Machinery and equipment used to 31
34	34	mechanically recycle post -use materials in a closed -loop circular process, 32
35	35	including without limitation machinery and equipment: 33
36	36	(1) Used to identify, gather, transport, 34
37	37	and store post-use materials; 35
38	38	(2) Used to convert post -use materials 36 HB1702
39	39
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41	41	into raw materials, work -in-process materials, or a finished product; and 1
42	42	(3) That convey converted post -use 2
43	43	materials directly to where it is reintroduced into the taxpayer’s 3
44	44	manufacturing process. 4
45	45	(b) As used in this subdivision 5
46	46	(c)(2)(B)(vii): 6
47	47	(1) “Closed-loop circular process” means 7
48	48	a manufacturing process in which reclaimed post -use materials are converted 8
49	49	and reintroduced into the original process and become a recognized component 9
50	50	of the finished product; 10
51	51	(2)(A) “Mechanically recycle” means to 11
52	52	reclaim and convert post -use materials into materials that are recognized in 12
53	53	the finished product using a series of physical processes. 13
54	54	(B) “Mechanically recycle” 14
55	55	includes without limitation washing, drying, grinding, regranulating, and 15
56	56	compounding; and 16
57	57	(3) “Post-use material” means a material 17
58	58	that is: 18
59	59	(A) Generated and reclaimed 19
60	60	directly from the taxpayer’s manufacturing process; 20
61	61	(B) Managed as an item of value in 21
62	62	a controlled manner; 22
63	63	(C) Intended to be mechanically 23
64	64	recycled into an item of raw materials, work -in-process material, or a 24
65	65	finished product; 25
66	66	(D) Not originated as a post -26
67	67	consumer waste material; and 27
68	68	(E) Not mixed with any other solid 28
69	69	waste or hazardous waste onsite or during processing; and 29
70	70	30
71	71	SECTION 2. Arkansas Code § 26 -53-114(c)(3)(B), concerning the 31
72	72	machinery and equipment that is included in the list of machinery and 32
73	73	equipment that is used directly in the manufacturing process for purposes of 33
74	74	the use tax exemption on certain machinery and equipment, is amended to add 34
75	75	an additional subdivision to read as follows: 35
76	76	(vi)(a) Machinery and equipment used to mechanically 36 HB1702
77	77
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79	79	recycle post-use materials generated directly from the manufacturing 1
80	80	operation in a closed -loop circular process, including without limitation 2
81	81	machinery and equipment: 3
82	82	(1) Used to identify, gather, transport, 4
83	83	and store post-use materials; 5
84	84	(2) Used to convert post -use materials 6
85	85	into raw materials, work -in-process materials, or a finished product; and 7
86	86	(3) That convey converted post -use 8
87	87	materials directly to where it is reintroduced into the taxpayer’s 9
88	88	manufacturing process. 10
89	89	(b) As used in this subdivision (c)(3)(B)(vi): 11
90	90	(1) “Closed-loop circular process” means 12
91	91	a manufacturing process in which reclaimed post -use materials are converted 13
92	92	and reintroduced into the original process and become a recognized component 14
93	93	of the finished product; 15
94	94	(2)(A) “Mechanically recycle” means to 16
95	95	reclaim and convert post -use materials into materials that are recognized in 17
96	96	the finished product using a series of physical processes. 18
97	97	(B) “Mechanically recycle” 19
98	98	includes without limitation washing, drying, grinding, regranulating, and 20
99	99	compounding; and 21
100	100	(3) “Post-use material” means a material 22
101	101	that is: 23
102	102	(A) Generated and reclaimed 24
103	103	directly from the taxpayer’s manufacturing process; 25
104	104	(B) Managed as an item of value in 26
105	105	a controlled manner; 27
106	106	(C) Intended to be mechanically 28
107	107	recycled into an item of raw materials, work -in-process material, or a 29
108	108	finished product; 30
109	109	(D) Not originated as a post -31
110	110	consumer waste material; and 32
111	111	(E) Not mixed with any other solid 33
112	112	waste or hazardous waste onsite or during processing; and 34
113	113	35
114	114	SECTION 3. EFFECTIVE DATE. Sections 1 and 2 of this act are effective 36 HB1702
115	115
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117	117	on the first day of the calendar quarter following the effective date of this 1
118	118	act. 2
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