AR SB275

Expands the definition of "manufacturer" to include electric power generators in sector 22 of the North American Industry Classification System that use natural gas and emit nitrogen oxides less than 3.5 parts per million on average annually.

Reduces the excise tax rate on natural gas and electricity for qualifying power generators from 6% to 5.25% beginning July 1, 2011, then to 4.25% beginning July 1, 2012, and to the standard rate beginning July 1, 2013.

Requires natural gas and electricity subject to the reduced tax rate to be separately metered from other uses and allows the director to require certificates of eligibility from consumers before purchase at the reduced rate.

Applies the same reduced tax rates to both the gross receipts tax (Section 2) and the compensating use tax (Section 3) on natural gas and electricity used by qualifying manufacturers.

Declares an emergency with an effective date of May 1, 2011, citing the state's need for additional electric generating capacity and its competitive disadvantage compared to surrounding states due to high tax rates on natural gas used for electricity generation.