SB820 Summary

• Authorizes the Arkansas Development Finance Authority to issue up to $125 million in general obligation bonds to finance a steel mill project by Big River Steel, LLC in Mississippi County, Arkansas.

• Provides financing structure including $50 million grant for site preparation costs, up to $20 million grant for piling costs (matching basis), and $50 million incentive loan for infrastructure with debt service beginning 24 months after closing.

• Requires Big River Steel to invest minimum $1.023 billion in actual project capital expenditures and create at least 525 new full-time jobs paying average annual wages of $75,000 during a 36-month preliminary period.

• Creates sales tax exemptions for natural gas and electricity used in steel manufacturing, extends recycling equipment tax credit carry-forward from 3 years to 14 years, and provides access to job creation tax credits and other state incentive programs.

• Establishes performance penalties and repayment obligations if investment and employment targets are not met, with a maximum repayment obligation capped at the lesser of $70 million or total grants disbursed; declares emergency effective date.