HB1935

House Bill 1935 amends the Consolidated Incentive Act of 2003 to establish a new Modernization and Automation Tax Credit for existing businesses in Arkansas. The bill increases the minimum investment threshold for qualifying projects from $5 million to $25 million and outlines strict eligibility requirements, including a positive cost-benefit analysis and a direct-pay sales and use tax permit. Participating businesses must maintain their current payroll and employment levels throughout the project and for 24 months following its completion. The legislation caps the tax credit at $2 million per fiscal year per applicant, with unused credits eligible for a five-year carry-forward. It also includes forfeiture provisions requiring the return of credits if the incentive agreement is breached. Additionally, the bill prohibits combining this new credit with certain other state investment tax incentives or major maintenance refunds.