(a) As used in this section:(1) “Direct compensation” means wages, salaries, bonuses, and commissions;(2) “Eligible facility costs” means expenditures for the development, acquisition, construction, expansion, renovation, refurbishment, maintenance, and operation of a qualified facility, including without limitation costs incurred for land, buildings, site improvements, permitting, facility lease payments, site characterization and assessment, engineering, and design used directly and exclusively for a qualified facility;(3) “Facility” means a tract or adjacent tracts of land in the state and any structures and tangible personal property contained on the land that are for the operation of a lithium, cathode, anode, lithium battery, and grid storage facility or are directly engaged in the processing, refining, conversion, manufacturing, and recycling of lithium or lithium products;(4) “Indirect compensation” means actual costs incurred for:(A) Health, life, and disability insurance coverage;(B) Retirement benefits, including without limitation pensions, annuities, and matching retirement fund contributions; and(C) Moving, relocation, and housing benefits;(5) (A) “Lithium, cathode, anode, lithium battery, and grid storage facility equipment” means equipment and related services, whether purchased or leased for immediate use or stored for future use in this state, and other enabling machinery, equipment, software, and hardware purchased or leased for the further processing, development, refinement, conversion, manufacturing, or recycling of lithium, cathode, anode, lithium battery, and grid storage products.(B) “Lithium, cathode, anode, lithium battery, and grid storage facility equipment” includes without limitation:(i) Equipment and materials used for:(a) The direct processing, refining, conversion, manufacturing, or recycling of lithium or lithium products, including without limitation lithium hydroxide and lithium carbonate;(b) The development or manufacturing of cathode facilities and cathode active materials, anode facilities and anode active materials, grid storage facilities and electrolytes, separator facilities, or lithium battery recycling facilities;(c) Equipment and input materials used in the operation of a qualified facility, including without limitation a component part, installation, refreshment, replacement, or upgrade of a qualified facility whether or not the property is affixed to or incorporated into real property;(d) Equipment necessary for the transformation, generation, distribution, storage, or management of electricity that is required to operate equipment of a qualified facility, including without limitation any substation, generator, uninterruptible energy equipment, supply, conduit, fuel piping and storage, cabling, duct bank, switch, switchboard, battery bank or energy storage system, testing equipment, and backup generator; and(e) Water conservation systems, including without limitation a mechanism that is designed to collect, conserve, and reuse water; and(ii) Labor services to install, repair, service, alter, fabricate, or maintain equipment and materials described in subdivision (a)(5)(B)(i) of this section;(6) “Qualified facility” means one (1) or more facilities, including any addition to or expansion of a facility, owned or operated by a qualified firm that:(A) Creates a qualified investment of at least one hundred million dollars ($100,000,000) within the state no later than ten (10) years after the start of construction of the facility;(B) Annually pays total direct compensation and indirect compensation of at least three million dollars ($3,000,000) to employees within the state over the two (2) calendar years following the calendar year in which the facility commences operations; and(C) Has received a positive cost-benefit analysis from the Arkansas Economic Development Commission for the facility;(7) “Qualified firm” means a for-profit business establishment that is:(A) Subject to state income, sales, and property taxes;(B) The owner or operator of a facility;(C) Engaged in developing lithium, cathode, anode, lithium battery, and grid storage facility equipment; and(8) “Qualified investment” means, with respect to a qualified facility, the aggregate, nonduplicative, eligible facility costs expended by a qualified firm in the state.
(1) “Direct compensation” means wages, salaries, bonuses, and commissions;
(2) “Eligible facility costs” means expenditures for the development, acquisition, construction, expansion, renovation, refurbishment, maintenance, and operation of a qualified facility, including without limitation costs incurred for land, buildings, site improvements, permitting, facility lease payments, site characterization and assessment, engineering, and design used directly and exclusively for a qualified facility;
(3) “Facility” means a tract or adjacent tracts of land in the state and any structures and tangible personal property contained on the land that are for the operation of a lithium, cathode, anode, lithium battery, and grid storage facility or are directly engaged in the processing, refining, conversion, manufacturing, and recycling of lithium or lithium products;
(4) “Indirect compensation” means actual costs incurred for:(A) Health, life, and disability insurance coverage;(B) Retirement benefits, including without limitation pensions, annuities, and matching retirement fund contributions; and(C) Moving, relocation, and housing benefits;
(A) Health, life, and disability insurance coverage;
(B) Retirement benefits, including without limitation pensions, annuities, and matching retirement fund contributions; and
(C) Moving, relocation, and housing benefits;
(5) (A) “Lithium, cathode, anode, lithium battery, and grid storage facility equipment” means equipment and related services, whether purchased or leased for immediate use or stored for future use in this state, and other enabling machinery, equipment, software, and hardware purchased or leased for the further processing, development, refinement, conversion, manufacturing, or recycling of lithium, cathode, anode, lithium battery, and grid storage products.(B) “Lithium, cathode, anode, lithium battery, and grid storage facility equipment” includes without limitation:(i) Equipment and materials used for:(a) The direct processing, refining, conversion, manufacturing, or recycling of lithium or lithium products, including without limitation lithium hydroxide and lithium carbonate;(b) The development or manufacturing of cathode facilities and cathode active materials, anode facilities and anode active materials, grid storage facilities and electrolytes, separator facilities, or lithium battery recycling facilities;(c) Equipment and input materials used in the operation of a qualified facility, including without limitation a component part, installation, refreshment, replacement, or upgrade of a qualified facility whether or not the property is affixed to or incorporated into real property;(d) Equipment necessary for the transformation, generation, distribution, storage, or management of electricity that is required to operate equipment of a qualified facility, including without limitation any substation, generator, uninterruptible energy equipment, supply, conduit, fuel piping and storage, cabling, duct bank, switch, switchboard, battery bank or energy storage system, testing equipment, and backup generator; and(e) Water conservation systems, including without limitation a mechanism that is designed to collect, conserve, and reuse water; and(ii) Labor services to install, repair, service, alter, fabricate, or maintain equipment and materials described in subdivision (a)(5)(B)(i) of this section;
(A) “Lithium, cathode, anode, lithium battery, and grid storage facility equipment” means equipment and related services, whether purchased or leased for immediate use or stored for future use in this state, and other enabling machinery, equipment, software, and hardware purchased or leased for the further processing, development, refinement, conversion, manufacturing, or recycling of lithium, cathode, anode, lithium battery, and grid storage products.
(B) “Lithium, cathode, anode, lithium battery, and grid storage facility equipment” includes without limitation:(i) Equipment and materials used for:(a) The direct processing, refining, conversion, manufacturing, or recycling of lithium or lithium products, including without limitation lithium hydroxide and lithium carbonate;(b) The development or manufacturing of cathode facilities and cathode active materials, anode facilities and anode active materials, grid storage facilities and electrolytes, separator facilities, or lithium battery recycling facilities;(c) Equipment and input materials used in the operation of a qualified facility, including without limitation a component part, installation, refreshment, replacement, or upgrade of a qualified facility whether or not the property is affixed to or incorporated into real property;(d) Equipment necessary for the transformation, generation, distribution, storage, or management of electricity that is required to operate equipment of a qualified facility, including without limitation any substation, generator, uninterruptible energy equipment, supply, conduit, fuel piping and storage, cabling, duct bank, switch, switchboard, battery bank or energy storage system, testing equipment, and backup generator; and(e) Water conservation systems, including without limitation a mechanism that is designed to collect, conserve, and reuse water; and(ii) Labor services to install, repair, service, alter, fabricate, or maintain equipment and materials described in subdivision (a)(5)(B)(i) of this section;
(i) Equipment and materials used for:(a) The direct processing, refining, conversion, manufacturing, or recycling of lithium or lithium products, including without limitation lithium hydroxide and lithium carbonate;(b) The development or manufacturing of cathode facilities and cathode active materials, anode facilities and anode active materials, grid storage facilities and electrolytes, separator facilities, or lithium battery recycling facilities;(c) Equipment and input materials used in the operation of a qualified facility, including without limitation a component part, installation, refreshment, replacement, or upgrade of a qualified facility whether or not the property is affixed to or incorporated into real property;(d) Equipment necessary for the transformation, generation, distribution, storage, or management of electricity that is required to operate equipment of a qualified facility, including without limitation any substation, generator, uninterruptible energy equipment, supply, conduit, fuel piping and storage, cabling, duct bank, switch, switchboard, battery bank or energy storage system, testing equipment, and backup generator; and(e) Water conservation systems, including without limitation a mechanism that is designed to collect, conserve, and reuse water; and
(a) The direct processing, refining, conversion, manufacturing, or recycling of lithium or lithium products, including without limitation lithium hydroxide and lithium carbonate;
(b) The development or manufacturing of cathode facilities and cathode active materials, anode facilities and anode active materials, grid storage facilities and electrolytes, separator facilities, or lithium battery recycling facilities;
(c) Equipment and input materials used in the operation of a qualified facility, including without limitation a component part, installation, refreshment, replacement, or upgrade of a qualified facility whether or not the property is affixed to or incorporated into real property;
(d) Equipment necessary for the transformation, generation, distribution, storage, or management of electricity that is required to operate equipment of a qualified facility, including without limitation any substation, generator, uninterruptible energy equipment, supply, conduit, fuel piping and storage, cabling, duct bank, switch, switchboard, battery bank or energy storage system, testing equipment, and backup generator; and
(e) Water conservation systems, including without limitation a mechanism that is designed to collect, conserve, and reuse water; and
(ii) Labor services to install, repair, service, alter, fabricate, or maintain equipment and materials described in subdivision (a)(5)(B)(i) of this section;
(6) “Qualified facility” means one (1) or more facilities, including any addition to or expansion of a facility, owned or operated by a qualified firm that:(A) Creates a qualified investment of at least one hundred million dollars ($100,000,000) within the state no later than ten (10) years after the start of construction of the facility;(B) Annually pays total direct compensation and indirect compensation of at least three million dollars ($3,000,000) to employees within the state over the two (2) calendar years following the calendar year in which the facility commences operations; and(C) Has received a positive cost-benefit analysis from the Arkansas Economic Development Commission for the facility;
(A) Creates a qualified investment of at least one hundred million dollars ($100,000,000) within the state no later than ten (10) years after the start of construction of the facility;
(B) Annually pays total direct compensation and indirect compensation of at least three million dollars ($3,000,000) to employees within the state over the two (2) calendar years following the calendar year in which the facility commences operations; and
(C) Has received a positive cost-benefit analysis from the Arkansas Economic Development Commission for the facility;
(7) “Qualified firm” means a for-profit business establishment that is:(A) Subject to state income, sales, and property taxes;(B) The owner or operator of a facility;(C) Engaged in developing lithium, cathode, anode, lithium battery, and grid storage facility equipment; and
(A) Subject to state income, sales, and property taxes;
(B) The owner or operator of a facility;
(C) Engaged in developing lithium, cathode, anode, lithium battery, and grid storage facility equipment; and
(8) “Qualified investment” means, with respect to a qualified facility, the aggregate, nonduplicative, eligible facility costs expended by a qualified firm in the state.
(b) (1) The gross receipts or gross proceeds derived from the purchase or sale of the following are exempt from the gross receipts tax levied by this chapter and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.:(A) Lithium, cathode, anode, lithium battery, and grid storage facility equipment;(B) Services purchased for the purpose of and in conjunction with developing, acquiring, constructing, expanding, renovating, refurbishing, and operating a qualified facility;(C) Electricity used by a qualified facility; and(D) Equipment, materials, and products for the further processing of materials used in manufacturing lithium, cathode, anode, lithium battery, and grid storage facility equipment in the state.(2) Equipment, materials, products, land, and services purchased, leased, or rented for the extraction of salt water are specifically excluded from the exemption provided under subdivision (b)(1) of this section.
(1) The gross receipts or gross proceeds derived from the purchase or sale of the following are exempt from the gross receipts tax levied by this chapter and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.:(A) Lithium, cathode, anode, lithium battery, and grid storage facility equipment;(B) Services purchased for the purpose of and in conjunction with developing, acquiring, constructing, expanding, renovating, refurbishing, and operating a qualified facility;(C) Electricity used by a qualified facility; and(D) Equipment, materials, and products for the further processing of materials used in manufacturing lithium, cathode, anode, lithium battery, and grid storage facility equipment in the state.
(A) Lithium, cathode, anode, lithium battery, and grid storage facility equipment;
(B) Services purchased for the purpose of and in conjunction with developing, acquiring, constructing, expanding, renovating, refurbishing, and operating a qualified facility;
(C) Electricity used by a qualified facility; and
(D) Equipment, materials, and products for the further processing of materials used in manufacturing lithium, cathode, anode, lithium battery, and grid storage facility equipment in the state.
(2) Equipment, materials, products, land, and services purchased, leased, or rented for the extraction of salt water are specifically excluded from the exemption provided under subdivision (b)(1) of this section.
(c) (1) To claim the exemption provided under this section, a qualified firm shall submit an application for a qualified facility to the Department of Finance and Administration.(2) A qualified firm is eligible for the exemption provided under this section upon the creation of a minimum qualified investment of at least one hundred million dollars ($100,000,000) if the qualified investment is created no later than ten (10) years after the start of construction of the qualified facility that is the subject of the application submitted under this subsection.(3) (A) Within thirty (30) days after receiving a completed application under this subsection, the department shall grant or deny the application in whole or in part.(B) If an application submitted under this subsection is denied as incomplete and the qualified firm submitting the application provides the additional information or documentation required by the department or otherwise completes its application within thirty (30) days of the notice of denial, the application shall be considered completed as of the original date of submission.(C) If an application submitted under this subsection is denied as incomplete and the qualified firm submitting the application fails to provide the information or documentation required by the department or complete its application within thirty (30) days of the notice of denial, the application shall remain denied and may be resubmitted in full with a new submission date.(D) If an application submitted under this subsection is complete and meets the requirements of this section, the department shall approve the application and certify that the qualified facility is eligible for the exemption provided under this section.(4) Once an application is approved under this subsection:(A) The department shall transmit an approved financial incentive certificate to the qualified firm; and(B) The exemption provided under this section may be claimed by the qualified facility.
(1) To claim the exemption provided under this section, a qualified firm shall submit an application for a qualified facility to the Department of Finance and Administration.
(2) A qualified firm is eligible for the exemption provided under this section upon the creation of a minimum qualified investment of at least one hundred million dollars ($100,000,000) if the qualified investment is created no later than ten (10) years after the start of construction of the qualified facility that is the subject of the application submitted under this subsection.
(3) (A) Within thirty (30) days after receiving a completed application under this subsection, the department shall grant or deny the application in whole or in part.(B) If an application submitted under this subsection is denied as incomplete and the qualified firm submitting the application provides the additional information or documentation required by the department or otherwise completes its application within thirty (30) days of the notice of denial, the application shall be considered completed as of the original date of submission.(C) If an application submitted under this subsection is denied as incomplete and the qualified firm submitting the application fails to provide the information or documentation required by the department or complete its application within thirty (30) days of the notice of denial, the application shall remain denied and may be resubmitted in full with a new submission date.(D) If an application submitted under this subsection is complete and meets the requirements of this section, the department shall approve the application and certify that the qualified facility is eligible for the exemption provided under this section.
(A) Within thirty (30) days after receiving a completed application under this subsection, the department shall grant or deny the application in whole or in part.
(B) If an application submitted under this subsection is denied as incomplete and the qualified firm submitting the application provides the additional information or documentation required by the department or otherwise completes its application within thirty (30) days of the notice of denial, the application shall be considered completed as of the original date of submission.
(C) If an application submitted under this subsection is denied as incomplete and the qualified firm submitting the application fails to provide the information or documentation required by the department or complete its application within thirty (30) days of the notice of denial, the application shall remain denied and may be resubmitted in full with a new submission date.
(D) If an application submitted under this subsection is complete and meets the requirements of this section, the department shall approve the application and certify that the qualified facility is eligible for the exemption provided under this section.
(4) Once an application is approved under this subsection:(A) The department shall transmit an approved financial incentive certificate to the qualified firm; and(B) The exemption provided under this section may be claimed by the qualified facility.
(A) The department shall transmit an approved financial incentive certificate to the qualified firm; and
(B) The exemption provided under this section may be claimed by the qualified facility.
(d) Upon confirmation that the minimum qualified investment required under subdivision (a)(6)(A) of this section has been met, the department shall issue a rebate to the qualified firm for any state sales or use tax paid on the eligible facility costs used to determine the minimum qualified investment.
(e) After receiving an approved financial incentive certificate from the department under subdivision (c)(4)(A) of this section, a qualified firm shall certify annually, for each calendar year in which the qualified firm is subject to the compensation requirement provided in subdivision (a)(6)(B) of this section, the aggregate annualized compensation at the qualified facility for the calendar year.
(f) An approved financial incentive certificate transmitted under subdivision (c)(4)(A) of this section shall be revoked if:(1) The qualified facility ceases operations within ten (10) years of the commencement of construction;(2) The qualified facility fails to meet the qualified investment requirement under subdivision (a)(6)(A) of this section; or(3) The aggregate annualized compensation of a qualified facility falls below the required aggregate compensation stated in subdivision (a)(6)(B) of this section.
(1) The qualified facility ceases operations within ten (10) years of the commencement of construction;
(2) The qualified facility fails to meet the qualified investment requirement under subdivision (a)(6)(A) of this section; or
(3) The aggregate annualized compensation of a qualified facility falls below the required aggregate compensation stated in subdivision (a)(6)(B) of this section.