AR HB1218

Reduces the excise tax rate on natural gas and electricity used by manufacturers from 4.375% to 1% effective July 1, 2013, eliminating the prior graduated rate reduction schedule that was set to expire.

Establishes a new graduated rate schedule for power generators using combined-cycle gas turbine technology, reducing from 5.125% (January 1, 2012) to 1% (January 1, 2015).

Implements a zero percent (0%) tax rate on natural gas and electricity for manufacturers beginning July 1, 2014, while maintaining constitutional excise taxes of 1/8 of 1% and 1/2%.

Distributes tax revenues as 76.6% to general revenues, 8.5% to the Property Tax Relief Trust Fund, and 14.9% to the Educational Adequacy Fund.

Declares an emergency effective July 1, 2013, citing rising manufacturing costs, high unemployment, and economic impacts on manufacturers as justification for immediate implementation.