(a) (1) There is allowed an income tax credit against the income tax imposed by this chapter in an amount equal to thirty percent (30%) of the cost of sustainable aviation fuel production and processing equipment purchased for use in the state by a qualified manufacturer of sustainable aviation fuel that has:(A) Obtained a certification from the Director of the Arkansas Economic Development Commission certifying to the Department of Finance and Administration that the qualified manufacturer of sustainable aviation fuel:(i) Operates a qualified sustainable aviation fuel project or has a qualified sustainable aviation fuel project in production; and(ii) Has invested more than two billion dollars ($2,000,000,000) after August 5, 2025 in a qualified sustainable aviation fuel project for: (a) Property purchased for use in the construction of one (1) or more buildings or an addition or improvement to a building to be used for producing sustainable aviation fuel; (b) Machinery and equipment located in or used in connection with the qualified sustainable aviation fuel project, excluding motor vehicles that are subject to registration; or (c) Project planning costs or construction labor costs, including without limitation:(1) On-site direct labor and supervision whether employed by a contractor or the owner of the qualified sustainable aviation fuel project;(2) Architectural fees or engineering fees, or both;(3) Right-of-way purchases;(4) Utility extensions;(5) Site preparation;(6) Parking lots;(7) Disposal or containment systems;(8) Water and sewer treatment systems;(9) Rail spurs;(10) Streets and roads;(11) Purchase of mineral rights;(12) Land;(13) Buildings;(14) Building renovation and demolition;(15) Production, processing, and testing equipment;(16) Freight charges;(17) Material handling equipment;(18) Drainage systems;(19) Water tanks and reservoirs;(20) Storage facilities;(21) Equipment rental;(22) Contractors' cost plus fees;(23) Builders' risk insurance;(24) Original spare parts;(25) Job administrative expenses;(26) Office furnishings and equipment;(27) Rolling stock;(28) Capitalized start-up costs as recognized by generally accepted accounting principles; and(29) Other costs related to the construction of the qualified sustainable aviation fuel project;(B) Obtained a certification from the Secretary of the Department of Energy and Environment certifying to the Department of Finance and Administration that:(i) The qualified manufacturer of sustainable aviation fuel is engaged in the business of manufacturing, producing, refining, or processing sustainable aviation fuel; and(ii) The machinery and equipment purchased are sustainable aviation fuel production and processing equipment;(C) Received a positive cost-benefit analysis, including without limitation an analysis of other incentives offered by the State of Arkansas with respect to the qualified sustainable aviation fuel project subject to the income tax credit, as certified by the Director of the Arkansas Economic Development Commission in consultation with the Chief Fiscal Officer of the State; and(D) An incentive agreement with performance criteria and claw-back provisions as required under subsection (c) of this section.(2) The income tax credit allowed for a qualified manufacturer of sustainable aviation fuel under this section shall not exceed the lesser of the amount:(A) Certified by the Department of Energy and Environment under subdivision (a)(1)(B) of this section; or(B) Provided in the incentive agreement for the qualified sustainable aviation fuel project.(3) The amount of the income tax credit under this section that may be claimed by the taxpayer in a tax year shall not exceed the amount of income tax due by the taxpayer.
(1) There is allowed an income tax credit against the income tax imposed by this chapter in an amount equal to thirty percent (30%) of the cost of sustainable aviation fuel production and processing equipment purchased for use in the state by a qualified manufacturer of sustainable aviation fuel that has:(A) Obtained a certification from the Director of the Arkansas Economic Development Commission certifying to the Department of Finance and Administration that the qualified manufacturer of sustainable aviation fuel:(i) Operates a qualified sustainable aviation fuel project or has a qualified sustainable aviation fuel project in production; and(ii) Has invested more than two billion dollars ($2,000,000,000) after August 5, 2025 in a qualified sustainable aviation fuel project for: (a) Property purchased for use in the construction of one (1) or more buildings or an addition or improvement to a building to be used for producing sustainable aviation fuel; (b) Machinery and equipment located in or used in connection with the qualified sustainable aviation fuel project, excluding motor vehicles that are subject to registration; or (c) Project planning costs or construction labor costs, including without limitation:(1) On-site direct labor and supervision whether employed by a contractor or the owner of the qualified sustainable aviation fuel project;(2) Architectural fees or engineering fees, or both;(3) Right-of-way purchases;(4) Utility extensions;(5) Site preparation;(6) Parking lots;(7) Disposal or containment systems;(8) Water and sewer treatment systems;(9) Rail spurs;(10) Streets and roads;(11) Purchase of mineral rights;(12) Land;(13) Buildings;(14) Building renovation and demolition;(15) Production, processing, and testing equipment;(16) Freight charges;(17) Material handling equipment;(18) Drainage systems;(19) Water tanks and reservoirs;(20) Storage facilities;(21) Equipment rental;(22) Contractors' cost plus fees;(23) Builders' risk insurance;(24) Original spare parts;(25) Job administrative expenses;(26) Office furnishings and equipment;(27) Rolling stock;(28) Capitalized start-up costs as recognized by generally accepted accounting principles; and(29) Other costs related to the construction of the qualified sustainable aviation fuel project;(B) Obtained a certification from the Secretary of the Department of Energy and Environment certifying to the Department of Finance and Administration that:(i) The qualified manufacturer of sustainable aviation fuel is engaged in the business of manufacturing, producing, refining, or processing sustainable aviation fuel; and(ii) The machinery and equipment purchased are sustainable aviation fuel production and processing equipment;(C) Received a positive cost-benefit analysis, including without limitation an analysis of other incentives offered by the State of Arkansas with respect to the qualified sustainable aviation fuel project subject to the income tax credit, as certified by the Director of the Arkansas Economic Development Commission in consultation with the Chief Fiscal Officer of the State; and(D) An incentive agreement with performance criteria and claw-back provisions as required under subsection (c) of this section.
(A) Obtained a certification from the Director of the Arkansas Economic Development Commission certifying to the Department of Finance and Administration that the qualified manufacturer of sustainable aviation fuel:(i) Operates a qualified sustainable aviation fuel project or has a qualified sustainable aviation fuel project in production; and(ii) Has invested more than two billion dollars ($2,000,000,000) after August 5, 2025 in a qualified sustainable aviation fuel project for: (a) Property purchased for use in the construction of one (1) or more buildings or an addition or improvement to a building to be used for producing sustainable aviation fuel; (b) Machinery and equipment located in or used in connection with the qualified sustainable aviation fuel project, excluding motor vehicles that are subject to registration; or (c) Project planning costs or construction labor costs, including without limitation:(1) On-site direct labor and supervision whether employed by a contractor or the owner of the qualified sustainable aviation fuel project;(2) Architectural fees or engineering fees, or both;(3) Right-of-way purchases;(4) Utility extensions;(5) Site preparation;(6) Parking lots;(7) Disposal or containment systems;(8) Water and sewer treatment systems;(9) Rail spurs;(10) Streets and roads;(11) Purchase of mineral rights;(12) Land;(13) Buildings;(14) Building renovation and demolition;(15) Production, processing, and testing equipment;(16) Freight charges;(17) Material handling equipment;(18) Drainage systems;(19) Water tanks and reservoirs;(20) Storage facilities;(21) Equipment rental;(22) Contractors' cost plus fees;(23) Builders' risk insurance;(24) Original spare parts;(25) Job administrative expenses;(26) Office furnishings and equipment;(27) Rolling stock;(28) Capitalized start-up costs as recognized by generally accepted accounting principles; and(29) Other costs related to the construction of the qualified sustainable aviation fuel project;
(i) Operates a qualified sustainable aviation fuel project or has a qualified sustainable aviation fuel project in production; and
(ii) Has invested more than two billion dollars ($2,000,000,000) after August 5, 2025 in a qualified sustainable aviation fuel project for: (a) Property purchased for use in the construction of one (1) or more buildings or an addition or improvement to a building to be used for producing sustainable aviation fuel; (b) Machinery and equipment located in or used in connection with the qualified sustainable aviation fuel project, excluding motor vehicles that are subject to registration; or (c) Project planning costs or construction labor costs, including without limitation:(1) On-site direct labor and supervision whether employed by a contractor or the owner of the qualified sustainable aviation fuel project;(2) Architectural fees or engineering fees, or both;(3) Right-of-way purchases;(4) Utility extensions;(5) Site preparation;(6) Parking lots;(7) Disposal or containment systems;(8) Water and sewer treatment systems;(9) Rail spurs;(10) Streets and roads;(11) Purchase of mineral rights;(12) Land;(13) Buildings;(14) Building renovation and demolition;(15) Production, processing, and testing equipment;(16) Freight charges;(17) Material handling equipment;(18) Drainage systems;(19) Water tanks and reservoirs;(20) Storage facilities;(21) Equipment rental;(22) Contractors' cost plus fees;(23) Builders' risk insurance;(24) Original spare parts;(25) Job administrative expenses;(26) Office furnishings and equipment;(27) Rolling stock;(28) Capitalized start-up costs as recognized by generally accepted accounting principles; and(29) Other costs related to the construction of the qualified sustainable aviation fuel project;
(a) Property purchased for use in the construction of one (1) or more buildings or an addition or improvement to a building to be used for producing sustainable aviation fuel;
(b) Machinery and equipment located in or used in connection with the qualified sustainable aviation fuel project, excluding motor vehicles that are subject to registration; or
(c) Project planning costs or construction labor costs, including without limitation:(1) On-site direct labor and supervision whether employed by a contractor or the owner of the qualified sustainable aviation fuel project;(2) Architectural fees or engineering fees, or both;(3) Right-of-way purchases;(4) Utility extensions;(5) Site preparation;(6) Parking lots;(7) Disposal or containment systems;(8) Water and sewer treatment systems;(9) Rail spurs;(10) Streets and roads;(11) Purchase of mineral rights;(12) Land;(13) Buildings;(14) Building renovation and demolition;(15) Production, processing, and testing equipment;(16) Freight charges;(17) Material handling equipment;(18) Drainage systems;(19) Water tanks and reservoirs;(20) Storage facilities;(21) Equipment rental;(22) Contractors' cost plus fees;(23) Builders' risk insurance;(24) Original spare parts;(25) Job administrative expenses;(26) Office furnishings and equipment;(27) Rolling stock;(28) Capitalized start-up costs as recognized by generally accepted accounting principles; and(29) Other costs related to the construction of the qualified sustainable aviation fuel project;
(1) On-site direct labor and supervision whether employed by a contractor or the owner of the qualified sustainable aviation fuel project;
(2) Architectural fees or engineering fees, or both;
(3) Right-of-way purchases;
(4) Utility extensions;
(5) Site preparation;
(6) Parking lots;
(7) Disposal or containment systems;
(8) Water and sewer treatment systems;
(9) Rail spurs;
(10) Streets and roads;
(11) Purchase of mineral rights;
(12) Land;
(13) Buildings;
(14) Building renovation and demolition;
(15) Production, processing, and testing equipment;
(16) Freight charges;
(17) Material handling equipment;
(18) Drainage systems;
(19) Water tanks and reservoirs;
(20) Storage facilities;
(21) Equipment rental;
(22) Contractors' cost plus fees;
(23) Builders' risk insurance;
(24) Original spare parts;
(25) Job administrative expenses;
(26) Office furnishings and equipment;
(27) Rolling stock;
(28) Capitalized start-up costs as recognized by generally accepted accounting principles; and
(29) Other costs related to the construction of the qualified sustainable aviation fuel project;
(B) Obtained a certification from the Secretary of the Department of Energy and Environment certifying to the Department of Finance and Administration that:(i) The qualified manufacturer of sustainable aviation fuel is engaged in the business of manufacturing, producing, refining, or processing sustainable aviation fuel; and(ii) The machinery and equipment purchased are sustainable aviation fuel production and processing equipment;
(i) The qualified manufacturer of sustainable aviation fuel is engaged in the business of manufacturing, producing, refining, or processing sustainable aviation fuel; and
(ii) The machinery and equipment purchased are sustainable aviation fuel production and processing equipment;
(C) Received a positive cost-benefit analysis, including without limitation an analysis of other incentives offered by the State of Arkansas with respect to the qualified sustainable aviation fuel project subject to the income tax credit, as certified by the Director of the Arkansas Economic Development Commission in consultation with the Chief Fiscal Officer of the State; and
(D) An incentive agreement with performance criteria and claw-back provisions as required under subsection (c) of this section.
(2) The income tax credit allowed for a qualified manufacturer of sustainable aviation fuel under this section shall not exceed the lesser of the amount:(A) Certified by the Department of Energy and Environment under subdivision (a)(1)(B) of this section; or(B) Provided in the incentive agreement for the qualified sustainable aviation fuel project.
(A) Certified by the Department of Energy and Environment under subdivision (a)(1)(B) of this section; or
(B) Provided in the incentive agreement for the qualified sustainable aviation fuel project.
(3) The amount of the income tax credit under this section that may be claimed by the taxpayer in a tax year shall not exceed the amount of income tax due by the taxpayer.
(b) Any unused income tax credit under this section that cannot be claimed in a tax year may be carried forward indefinitely.
(c) The issuance of an income tax credit allowed under this section is subject to an incentive agreement with performance criteria and claw-back provisions between a taxpayer and the Arkansas Economic Development Commission that:(1) (A) Is subject to the approval of the Chief Fiscal Officer of the State to ensure that the cost-benefit analysis required under subdivision (a)(1)(C) of this section is met and maintained for a test period that is the longer of the life of the income tax credits or twelve (12) years, subject to the limitation stated in subdivision (c)(1)(B) of this section.(B) The test period described in subdivision (c)(1)(A) of this section shall not be longer than fifteen (15) years; and(2) Includes without limitation the:(A) Capital investment for the qualified sustainable aviation fuel project;(B) New full-time permanent employee positions created by the qualified sustainable aviation fuel project;(C) Annual salary requirements for the new full-time permanent employee positions created by the qualified sustainable aviation fuel project;(D) Timeline for fulfilling the investment and job creation targets stated in the performance criteria and claw-back agreement for the qualified sustainable aviation fuel project; and(E) Conditions for the claw-back provisions, which are triggered if, during the test period stated in subdivision (c)(1) of this section, the taxpayer:(i) Does not meet the required targets of the qualified sustainable aviation fuel project related to capital investment, job creation, timeline, or annual salary amounts; or(ii) Fails to maintain a positive cost-benefit analysis.
(1) (A) Is subject to the approval of the Chief Fiscal Officer of the State to ensure that the cost-benefit analysis required under subdivision (a)(1)(C) of this section is met and maintained for a test period that is the longer of the life of the income tax credits or twelve (12) years, subject to the limitation stated in subdivision (c)(1)(B) of this section.(B) The test period described in subdivision (c)(1)(A) of this section shall not be longer than fifteen (15) years; and
(A) Is subject to the approval of the Chief Fiscal Officer of the State to ensure that the cost-benefit analysis required under subdivision (a)(1)(C) of this section is met and maintained for a test period that is the longer of the life of the income tax credits or twelve (12) years, subject to the limitation stated in subdivision (c)(1)(B) of this section.
(B) The test period described in subdivision (c)(1)(A) of this section shall not be longer than fifteen (15) years; and
(2) Includes without limitation the:(A) Capital investment for the qualified sustainable aviation fuel project;(B) New full-time permanent employee positions created by the qualified sustainable aviation fuel project;(C) Annual salary requirements for the new full-time permanent employee positions created by the qualified sustainable aviation fuel project;(D) Timeline for fulfilling the investment and job creation targets stated in the performance criteria and claw-back agreement for the qualified sustainable aviation fuel project; and(E) Conditions for the claw-back provisions, which are triggered if, during the test period stated in subdivision (c)(1) of this section, the taxpayer:(i) Does not meet the required targets of the qualified sustainable aviation fuel project related to capital investment, job creation, timeline, or annual salary amounts; or(ii) Fails to maintain a positive cost-benefit analysis.
(A) Capital investment for the qualified sustainable aviation fuel project;
(B) New full-time permanent employee positions created by the qualified sustainable aviation fuel project;
(C) Annual salary requirements for the new full-time permanent employee positions created by the qualified sustainable aviation fuel project;
(D) Timeline for fulfilling the investment and job creation targets stated in the performance criteria and claw-back agreement for the qualified sustainable aviation fuel project; and
(E) Conditions for the claw-back provisions, which are triggered if, during the test period stated in subdivision (c)(1) of this section, the taxpayer:(i) Does not meet the required targets of the qualified sustainable aviation fuel project related to capital investment, job creation, timeline, or annual salary amounts; or(ii) Fails to maintain a positive cost-benefit analysis.
(i) Does not meet the required targets of the qualified sustainable aviation fuel project related to capital investment, job creation, timeline, or annual salary amounts; or
(ii) Fails to maintain a positive cost-benefit analysis.