All Roll Calls
Yes: 119 • No: 5
ArkansasSB5682025 Regular SessionSenate
TO AMEND THE LAW CONCERNING THE TAXES APPLICABLE TO LITHIUM EXTRACTION AND DEVELOPMENT; TO PROVIDE A SALES AND USE TAX EXEMPTION FOR LITHIUM RESOURCE DEVELOPMENT; AND TO AMEND THE LAW CONCERNING THE SEVERANCE TAX ON LITHIUM.
Sponsored By: Steve Crowell (Republican), Lane Jean (Republican)
Enacted
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Recycling businesses gain broader tax credit
Beginning October 1, 2025, Arkansas expands its existing income tax credit for waste-reduction, reuse, or recycling equipment. Electronic waste and lithium-ion battery cells and packs now count as eligible solid waste. Businesses using qualifying equipment for these waste streams can claim the credit. This provision does not state the credit amount.
Salt-water taxes fund state and counties
Beginning October 1, 2025, Arkansas sets distribution rules for salt-water extraction tax receipts, including penalties and costs. The formula first sets aside 45¢ per 1,000 barrels under the law's separate allocation rule. For the first $325,000 collected each fiscal year, 3% of the remainder goes to a state general revenue account. The other 97% is split: 75% to general revenues and 25% to the County Aid Fund. Above $325,000, the same set-aside and 3% allocation apply, but all of the remaining 97% goes to county aid. Counties receive quarterly shares based on their share of salt-water production and must credit the above-threshold distributions to county road funds. The general deposit rule for other covered taxes, penalties, and costs excludes both natural gas and salt water.
Tax breaks for major lithium facilities
Beginning October 1, 2025, qualifying Arkansas lithium, battery-component, battery, and grid-storage facilities receive sales and use tax exemptions. Covered purchases include eligible equipment, materials, services, electricity, and further-processing inputs—not salt-water extraction purchases. Eligible facility costs include land, buildings, site work, planning, permits, leases, equipment, and qualifying operating costs. For-profit owners or operators subject to Arkansas income, sales, and property taxes must invest at least $100 million within 10 years after construction begins. Facilities must pay Arkansas employees at least $3 million annually in wages and benefits in each of the two calendar years following the year operations begin. Approval requires a positive state cost-benefit review and an incentive certificate, followed by annual compensation reporting. After investment is confirmed, businesses can receive rebates of state sales and use taxes paid on eligible costs meeting that threshold. Certificates are revoked for failure to meet investment or compensation requirements, or closure within 10 years of construction.
Lithium brine producers pay extraction taxes
Beginning October 1, 2025, Arkansas extends its salt-water extraction taxes to lithium production. Producers pay $2.45 per 1,000 barrels when dissolved materials are used for lithium or covered related products. Two additional brine taxes apply to Arkansas production for lithium extraction: 20¢ plus 10¢ per 1,000 barrels. Those additional taxes total 30¢ per 1,000 barrels and support the Arkansas Museum of Natural Resources Fund.
Sponsors & Cosponsors
Sponsors
Steve Crowell
Republican • Senate
Lane Jean
Republican • House
Cosponsors
Wade Andrews
Republican • House
Carol Dalby
Republican • House
Ben Gilmore
Republican • Senate
Dolly Henley
Republican • House
Matthew J. Shepherd
Republican • House
Matt Stone
Republican • Senate
Roll Call Votes
House vote • 4/15/2025
House Vote - Tuesday, April 15, 2025 4:16:55 PM
Yes: 86 • No: 5 • Other: 6
Senate vote • 4/9/2025
Senate Vote - Wednesday, April 9, 2025 9:42:18 PM
Yes: 33 • No: 0 • Other: 2
Actions Timeline
Notification that SB568 is now Act 1012
4/23/2025SenateDELIVERED TO GOVERNOR.
4/16/2025SenateReported correctly enrolled and ordered delivered to the Governor.
4/16/2025SenateORDERED ENROLLED
4/15/2025SenateReturned from the House as passed.
4/15/2025SenateReturned to the Senate as passed.
4/15/2025HouseRead the third time and passed and ordered transmitted to the Senate.
4/15/2025HouseReturned by the Committee Do Pass
4/14/2025HouseRead the first time, rules suspended, read the second time and referred to the Committee on AGRICULTURE, FORESTRY & ECONOMIC DEVELOPMENT- HOUSE
4/10/2025HouseRECEIVED FROM THE SENATE
4/10/2025HouseOrdered immediately transmitted to the House.
4/9/2025SenateRead the third time and passed.
4/9/2025SenateRules suspended.
4/9/2025SenateReturned by the Committee, with the recommendation that it Do Pass
4/9/2025SenateRe-referred to REVENUE & TAX - SENATE
4/9/2025SenateREPORTED CORRECTLY ENGROSSED
4/9/2025SenateAmendment # 3 read the first time, rules suspended, read the second time and adopted, ordered engrossed.
4/9/2025SenatePlaced on second reading for purpose of amendment.
4/9/2025SenateRules suspended.
4/9/2025SenateReturned by the Committee, with the recommendation that it Do Pass
4/8/2025SenateRe-referred to REVENUE & TAX - SENATE
4/8/2025SenateREPORTED CORRECTLY ENGROSSED
4/8/2025SenateAmendment # 2 read the first time, rules suspended, read the second time and adopted, ordered engrossed.
4/8/2025SenateWithdrawn from Committee and placed on 2nd reading for purpose of amendment # 2
4/8/2025SenateRe-referred to REVENUE & TAX - SENATE
4/1/2025Senate
Bill Text
SB568 - Introduced
3/27/2025
Act Version
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