AR SB386

Repeals Arkansas Code § 19-5-1264, eliminating the Arkansas River Navigation System Fund

Redirects ad valorem taxes and penalties from water transportation companies: reduces Arkansas River Navigation System Fund allocation from 70% to 0%, and increases Arkansas Port, Intermodal, and Waterway Development Grant Program Fund allocation from 30% to 100% of collections exceeding $2,550,000 annually

Creates a new waterways investment income tax credit allowing up to $3,000,000 per taxpayer for capital improvements to water transportation facilities, with a maximum $2,500,000 cumulative annual limit distributed on a first-come, first-served basis

Limits annual tax credit claims to 10% of total eligible credit per taxpayer, with unused credits eligible for nine-year carryforward

Requires Department of Commerce approval certifying that capital investments will provide economic benefits equal to or greater than the tax credit amount, and prohibits taxpayers from receiving both the tax credit and Arkansas Port, Intermodal, and Waterway Development Grant Program funds

Effective for tax years beginning January 1, 2024