AR HB1771

Creates a 25% income tax credit for taxpayers who install, construct, or expand broadband telecommunications infrastructure in unincorporated areas or municipalities with populations under 10,000.

Qualifying broadband service must have download speeds of at least 25 megabytes per second and upload speeds of at least 3 megabytes per second.

Annual credit claims are capped at the taxpayer's income tax liability, with unused credits eligible for carryforward up to 3 consecutive tax years.

The Department of Finance and Administration must adopt rules to implement the credit, including requirements for proof of infrastructure location and broadband service speeds.

Tax credit is effective for tax years beginning January 1, 2022, with initial rules required to be filed by January 1, 2022 or as soon as practicable after legislative approval.