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2017 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 51 - Income Taxes
Subchapter 3 - Exemptions and Reduced Tax Rates
§ 26-51-313. Qualified drop-in biofuels manufacturing exemption
Universal Citation: AR Code § 26-51-313 (2017)
- (a) There is allowed an exemption from the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., for the period of time determined under subsection (b) of this section for a qualified drop-in biofuels manufacturer.
- (b) The number of years that an income tax exemption is allowed under this section is calculated as follows:
- (1)
- (A) Multiply the proposed average hourly wage to be paid by the qualified drop-in biofuels manufacturer by two thousand eighty (2,080) hours.
- (B) Multiply the product obtained under subdivision (b)(1)(A) of this section by the number of jobs to be created by the qualified drop-in biofuels manufacturer to determine the proposed annual payroll;
- (2)
- (A) Multiply one hundred ten percent (110%) of the state's average hourly wage from the preceding calendar year by two thousand eighty (2,080) hours.
- (B) Multiply the product obtained under subdivision (b)(2)(A) of this section by one thousand (1,000);
- (3) Divide the product calculated under subdivision (b)(1) of this section by the product calculated under subdivision (b)(2) of this section;
- (4) Multiply the quotient calculated under subdivision (b)(3) of this section by six-tenths (0.6) to determine the weighting factor for payroll;
- (5) Divide the proposed investment of the qualified drop-in biofuels manufacturer by two hundred fifty million dollars ($250,000,000);
- (6) Multiply the quotient calculated under subdivision (b)(5) of this section by four-tenths (0.4) to determine the weighting factor for investment;
- (7) Add the product calculated under subdivision (b)(4) of this section to the product calculated under subdivision (b)(6) of this section; and
- (8)
- (A) Multiply the sum calculated under subdivision (b)(7) of this section by twenty (20) and round to the nearest whole number.
- (B) The number calculated under subdivision (b)(8)(A) of this section is the number of years that the income tax exemption is allowed for the qualified drop-in biofuels manufacturer.
- (C) However, an income tax exemption allowed under this section shall not exceed twenty (20) years.
- (1)
- (c) As used in this section:
- (1) "Drop-in biofuels" means a liquid motor fuel that:
- (A) Is a substitute for conventional petroleum-based motor fuel;
- (B) Is completely interchangeable and compatible with conventional petroleum-based motor fuel;
- (C) Does not require modification of conventional engine fuel systems; and
- (D) Can be delivered through the existing fuel distribution systems, including without limitation:
- (i) Intrastate and interstate petroleum pipelines; and
- (ii) Existing gasoline and diesel fuel pumps; and
- (2) "Qualified drop-in biofuels manufacturer" means a person or entity that:
- (A) Manufactures drop-in biofuels;
- (B) Invests at least twenty million dollars ($20,000,000) in a new or expanded drop-in biofuels manufacturing facility;
- (C) Creates at least one hundred (100) new jobs;
- (D) If the new or expanded drop-in biofuels manufacturing facility is a subsidiary of an existing Arkansas company, establishes the new or expanded drop-in biofuels facility as a separate legal entity;
- (E) Locates the new or expanded drop-in biofuels facility in the state after January 1, 2013, but before June 30, 2023; and
- (F) Signs a financial incentive agreement with the Arkansas Economic Development Commission after January 1, 2013, but before June 30, 2023.
- (1) "Drop-in biofuels" means a liquid motor fuel that:
- (d) The ability to qualify for an income tax exemption under this section expires June 30, 2023.
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