AR HB1303

Creates a 30% income tax credit for the cost of sustainable aviation fuel (SAF) production and processing equipment purchased by qualified manufacturers in Arkansas

Requires qualifying projects to have an installed facility cost exceeding $2 billion, employ at least 75 new full-time permanent employees, and begin construction by December 31, 2027

Defines sustainable aviation fuel as kerosene-type jet fuel derived from wood biomass, with manufacturers required to use more than 80% of electricity and natural gas consumption for production equipment

Unused tax credits may be carried forward indefinitely, but annual credits claimed cannot exceed the taxpayer's income tax liability for that year

Requires an incentive agreement with the Arkansas Economic Development Commission including performance criteria, claw-back provisions, and a positive cost-benefit analysis maintained for up to 15 years