HB1317 Summary

• Sets a zero percent (0%) sales and use tax rate on natural gas, electricity, and coal sold to manufacturers for use directly in manufacturing processes or to data centers.

• Data centers remain subject to excise taxes of one-eighth of one percent (⅛%), one-half percent (½%), and one-half percent (½%) under Arkansas Constitutional Amendments 75, 91, and 101 respectively.

• Defines "data center" as a facility containing electronic equipment for processing, storing, and transmitting digital information with environmental controls and specified redundant capacity and distribution systems; explicitly excludes facilities used for cryptocurrency operations.

• Requires natural gas and electricity used at reduced tax rates to be separately metered from other uses and allows the Department of Finance and Administration to require certificates of eligibility from purchasers.

• Declares an emergency clause to take effect immediately upon Governor approval, finding that rapid tax relief is necessary to attract time-sensitive data center development projects to Arkansas.