AR HB1697

Creates a limited income tax exemption under the Income Tax Act of 1929 for qualified photovoltaic manufacturers, with the exemption period calculated based on proposed payroll (weighted 60%) and proposed investment (weighted 40%).

Exemption period is capped at 20 years maximum, determined by multiplying the sum of payroll and investment weighting factors by 20 and rounding to the nearest whole number.

Qualified manufacturer must manufacture photovoltaic energy systems, cells, or modules; invest at least $20,000,000 in a new or expanded facility; create at least 100 new jobs; and locate the facility in Arkansas after January 1, 2013 but before June 30, 2023.

If the facility is a subsidiary of an existing Arkansas company, it must be established as a separate legal entity.

Manufacturer must sign a financial incentive agreement with the Arkansas Economic Development Commission between January 1, 2013 and June 30, 2023; the ability to qualify expires June 30, 2023.

Act is effective for tax years beginning January 1, 2013.