AR HB1314

Increases the maximum tax credit for water impoundment projects from $90,000 to $120,000, with annual usage limits raised from $9,000 to $18,000.

Raises the tax credit percentage and dollar limits for surface water conversion projects outside critical areas from 10% to 25% of project costs and from $27,000 to $35,000.

Increases the maximum carryover period for unused tax credits from 2 years to 15 years for most project categories and from 4 years to 15 years for industrial/commercial projects within critical areas.

Expands the tax credit threshold that triggers program expiration from $10 million to $20 million in total annual credits used.

Effective for tax years beginning on or after January 1, 2021.