AR HB1779

Amends Arkansas law to allow income tax credits for both new qualified wood energy products and forest maintenance projects and expansion projects of existing facilities.

Defines "qualified wood energy products and forest maintenance expansion project" as projects using low-value wood (sawmill residuals, forest thinnings, damaged trees) to produce high-efficiency wood energy products, with construction commencing no earlier than January 1, 2023, and closing by December 31, 2025.

Requires taxpayers in both project types to commit to at least 100 net new full-time permanent employees with average annual wages of at least $60,000 and total investments exceeding $50,000,000.

Allows tax credits up to $5,000,000 annually per project, with unused credits carried forward indefinitely; permits public retirement systems with ownership interests to sell credits to the state for 80% of face value.

Establishes incentive agreements with performance criteria and clawback provisions lasting 12-15 years to ensure positive cost-benefit analysis and compliance with capital investment and job creation targets.