AR SB478

Amends the Arkansas Port, Intermodal, and Waterway Development Grant Program to clarify eligible uses including construction, improvement, and expansion of port facilities, wharves, cargo handling equipment, and cost-sharing for U.S. Army Corps of Engineers navigation projects.

Redirects 30% of ad valorem taxes and penalties collected from water transportation companies in excess of $2,550,000 annually to the Arkansas Port, Intermodal, and Waterway Development Grant Program Fund, with 70% going to the Arkansas River Navigation System Fund.

Creates a new income tax credit for taxpayers making capital improvements to water transportation facilities between January 1, 2024, and December 31, 2025, with a maximum credit of $3,000,000 per taxpayer and an annual cap of $2,500,000 across all taxpayers on a first-come, first-served basis.

Limits annual tax credit claims to 10% of the total eligible credit, allows unused credits to be carried forward for nine consecutive tax years, and requires Secretary of Commerce approval based on demonstrated economic benefit to the state.

Prohibits taxpayers who received funds under the Port, Intermodal, and Waterway Development Grant Program from claiming the tax credit; effective for tax years beginning January 1, 2024.