SB478

Senate Bill 478 modifies the Arkansas Port, Intermodal, and Waterway Development Grant Program by expanding the scope of projects eligible for funding and adjusting the funding allocation process. The bill redirects a portion of ad valorem taxes and penalties collected from water transportation companies to the Arkansas Port, Intermodal, and Waterway Development Grant Program Fund. Additionally, it establishes a new income tax credit for capital investments related to water transportation infrastructure, available for projects initiated between 2024 and 2025. This tax credit is capped at $2.5 million annually across all taxpayers, with individual credits limited to $3 million and the ability to carry forward unused amounts for nine years. To qualify for the tax credit, the Secretary of the Department of Commerce must verify that the capital investment will provide an economic benefit to the state equal to or greater than the credit amount. Taxpayers receiving direct grant funds are ineligible for this specific income tax credit. The Department of Finance and Administration is tasked with reviewing the economic impact of these credits by 2030 and 2035.