AR HB1702

Amends Arkansas Code to add a new sales and use tax exemption for machinery and equipment used in closed-loop circular recycling processes within manufacturing operations

Covered equipment includes machinery used to identify, gather, transport, store, and convert post-use materials back into raw materials, work-in-process materials, or finished products

"Closed-loop circular process" is defined as a manufacturing process where reclaimed post-use materials are converted and reintroduced into the original process as a recognized component of the finished product

"Post-use material" must be generated directly from the taxpayer's own manufacturing process, managed as an item of value, and cannot be post-consumer waste or mixed with solid/hazardous waste

Effective date is the first day of the calendar quarter following the act's effective date