AR SB688

Establishes a new "qualified expansion project" definition for steel manufacturers expanding facilities commencing January 1, 2017 or later, with at least $1 billion in total investment and commitment to create at least 500 new direct positions at $75,000+ annual wage.

Creates a "qualified steel specialty products manufacturing facility" definition for new facilities melting scrap steel in electric arc furnaces with at least $200 million investment and commitment to create at least 150 new direct positions at $75,000+ annual wage.

Allows up to $11 million in annual waste reduction/recycling equipment tax credits for qualified expansion projects and tiered amounts ($4-6.5 million annually) for qualified steel specialty products facilities that are proprietorships, partnerships, or limited liability companies.

Grants state retirement systems possessing tax credits the ability to sell credits to the state at 80% of face value, with the state purchasing credits from the Economic Development Incentive Fund, and establishes carry-forward protections if state fails to timely pay.

Requires cost-benefit analysis and performance/claw back agreements for all tax credits under this section, with test periods of 14-15 years to ensure project targets for capital investment, job creation, and wage requirements are maintained.