Stricken language would be deleted from and underlined language would be added to present law.
Act 701 of the Regular Session
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State of Arkansas As Engrossed: S4/1/25 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 530 3
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By: Senators B. Davis, J. Dismang, J. English, Flippo, Gilmore, Hester, Irvin, B. Johnson, M. Johnson, 5
M. McKee, Rice, J. Scott, Stone 6
By: Representatives Beck, Achor, Andrews, Barker, Beaty Jr., Bentley, S. Berry, Breaux, M. Brown, Joey 7
Carr, Childress, Clowney, C. Cooper, Crawford, Eaton, Eaves, Eubanks, Furman, Gazaway, Gramlich, 8
Hall, Hawk, Holcomb, Hollowell, Jean, Magie, McClure, McGruder, S. Meeks, Milligan, K. Moore, 9
Painter, Perry, Pilkington, Richmond, Rye, Springer, Wardlaw, Warren, Wooten 10
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For An Act To Be Entitled 12
AN ACT TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND 13
FOREST MAINTENANCE INCOME TAX CREDIT; AND FOR OTHER 14
PURPOSES. 15
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Subtitle 18
TO AMEND THE ARKANSAS WOOD ENERGY 19
PRODUCTS AND FOREST MAINTENANCE INCOME 20
TAX CREDIT. 21
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
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SECTION 1. Uncodified Acts 2021, No. 594, § 2(7), concerning the 25
legislative findings for Acts 2021, No. 594, is amended to read as follows: 26
(7) In order to attract and maintain industry to use the 27
available fiber resources, support healthy timberland, encourage capital 28
investment in the Arkansas timber industry, and provide well-paying jobs, and 29
use wood byproducts for the production of energy, the creation of a logging 30
and wood fiber transportation job creation income tax credit should be 31
established. 32
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SECTION 2. Arkansas Code § 26 -51-2702 is amended to read as follows: 34
26-51-2702. Legislative purpose and intent. 35
The purpose and intent of this subchapter is to increase capacity in 36 As Engrossed: S4/1/25 SB530
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the state for the use of sawmill mill residuals, including sawdust and wood 1
chips, wood byproducts, including bark, and thinnings to maintain a healthy 2
forest, unwanted treetops, and damaged or diseased trees not wanted by 3
sawmills. 4
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SECTION 3. Arkansas Code § 26 -51-2703(6) and (7), concerning the 6
definitions to be used under the Arkansas Wood Energy Products and Forest 7
Maintenance Income Tax Credit, are amended to read as follows: 8
(6) “Qualified wood energy products and forest maintenance 9
project” means a project specified in the incentive agreement to include one 10
(1) or more Arkansas facilities in the same ownership group: 11
(A) For which the taxpayer commenced construction by the 12
date specified in the incentive agreement, but no earlier than January 1, 13
2020; 14
(B) That supports the Arkansas timber industry by using 15
low-value wood, including without limitation sawmill mill residuals, forest 16
thinnings, unwanted treetops, and damaged or diseased trees , and wood 17
byproducts, including bark , to produce high-efficiency, high-energy wood 18
energy products; 19
(C) In which the taxpayer has a total projected investment 20
in excess of fifty million dollars ($50,000,000) one billion dollars 21
($1,000,000,000); 22
(D) That is undertaken by a taxpayer who has entered into 23
an incentive agreement with the State of Arkansas in which the taxpayer 24
commits to creating at least one hundred (100) four hundred (400) net new 25
full-time permanent employees with an average annual wage of at least sixty 26
thousand dollars ($60,000); 27
(E) That will provide a positive cost -benefit analysis to 28
the state as determined by the commission and the Office of Economic Analysis 29
and Tax Research; 30
(F) That is certified as having a closing date before 31
December 31, 2023 June 30, 2028, for all facilities, by which the taxpayer 32
has certified and the state has verified that necessary capital acquisition 33
and borrowing for the facilities has occurred to ensure that funds will be 34
available to: 35
(i) Secure a site for the facilities; 36 As Engrossed: S4/1/25 SB530
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(ii) Obtain engineering services for the facilities; 1
(iii) Purchase equipment for the facilities; and 2
(iv) Commence construction on the facilities; and 3
(G) That is undertaken by a taxpayer that has elected by 4
agreement with the State of Arkansas for the taxpayer's facilities to be 5
classified as a qualified wood energy products and forest maintenance 6
project; and 7
(7)(A) “Wood energy products equipment” means: 8
(i) New or used machinery or equipment located in 9
Arkansas on the last day of the taxable year that is operated or used 10
exclusively in Arkansas to collect, separate, treat, pulverize, dry, modify, 11
or convert wood fiber and wood byproducts, including bark, so the resulting 12
product may be used as a raw material, for productive energy use, or to 13
manufacture other materials; 14
(ii) Devices that are directly connected with or are 15
an integral and necessary part of machinery or equipment operated or used 16
exclusively in Arkansas to collect, separate, treat, pulverize, dry, modify, 17
or convert wood fiber and wood byproducts, including bark, and are necessary 18
for the collection, separation, treatment, pulverization, drying, 19
modification, or manufacturing of wood fiber; 20
(iii) Equipment that produces energy with wood 21
power; and 22
(iv) A device that is directly connected with or is 23
an integral and necessary part of machinery or equipment operated or used 24
exclusively in Arkansas to produce energy with wood power. 25
(B) “Wood energy products equipment” does not include a 26
vehicle or trailer that is licensed or that normally would be licensed for 27
use on highways in Arkansas. 28
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SECTION 4. Arkansas Code § 26 -51-2704(a), concerning the Arkansas Wood 30
Energy Products and Forest Maintenance Income Tax Credit, is amended to read 31
as follows: 32
(a) There is allowed a tax credit against the tax imposed by this 33
chapter in an amount equal to thirty percent (30%) twenty percent (20%) of 34
the costs of wood energy products equipment purchased for use in Arkansas 35
after the date specified in the incentive agreement by a taxpayer that: 36 As Engrossed: S4/1/25 SB530
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(1) Is engaged in the business of collecting, separating, 1
treating, pulverizing, drying, modifying, or manufacturing wood energy 2
products and wood byproducts, including bark ; and 3
(2) Has been certified as owning a qualified wood energy 4
products and forest maintenance project or a qualified wood energy products 5
and forest maintenance expansion project. 6
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SECTION 5. Arkansas Code § 26 -51-2704(b)(2)(B), concerning the 8
Arkansas Wood Energy Products and Forest Maintenance Income Tax Credit, is 9
amended to read as follows: 10
(B) Beginning July 1, 2021 2026, and by July 15 of each 11
subsequent year, a taxpayer shall provide notice to the Department of Finance 12
and Administration of the amount of tax credits, including without limitation 13
tax credits the taxpayer expects will receive certification during the fiscal 14
year by the Department of Energy and Environment, subject to the limitation 15
in subdivision (b)(1) of this section, that will be sold or transferred for 16
value. 17
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SECTION 6. Arkansas Code § 26 -51-2704(c)(7), concerning the Arkansas 19
Wood Energy Products and Forest Maintenance Income Tax Credit, is amended to 20
read as follows: 21
(7) Beginning July 1, 2021 2026, by July 15 of each year, a 22
public retirement system with possession and control of tax credits under 23
this subsection shall provide notice to the Department of Finance and 24
Administration of the amount of tax credits, including without limitation tax 25
credits the public retirement system expects will receive certification 26
during the fiscal year by the Department of Energy and Environment, subject 27
to the limitations in subdivisions (c)(4) and (c)(5) of this section, to be 28
sold or transferred for value. 29
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SECTION 7. EFFECTIVE DATE. Sections 1 -6 of this act are effective for 31
tax years beginning on or after January 1, 2026. 32
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/s/B. Davis 34
APPROVED: 4/16/25 35
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