AR SB941

Creates an income tax exemption for qualified drop-in biofuels manufacturers, with the exemption period calculated based on proposed payroll (60% weighting) and proposed investment (40% weighting), capped at 20 years maximum.

Requires qualified manufacturers to invest at least $20,000,000 in a new or expanded drop-in biofuels facility, create at least 100 new jobs, and locate the facility in Arkansas between January 1, 2013 and June 30, 2023.

Defines "drop-in biofuels" as liquid motor fuel that substitutes for conventional petroleum-based fuel, is fully interchangeable with conventional fuel, requires no engine modifications, and can be delivered through existing petroleum pipelines and fuel pumps.

Requires manufacturers that are subsidiaries of existing Arkansas companies to establish the new or expanded facility as a separate legal entity and to sign a financial incentive agreement with the Arkansas Economic Development Commission between January 1, 2013 and June 30, 2023.

Expires the ability to qualify for the exemption on June 30, 2023, and is effective for tax years beginning January 1, 2013 and after.