AR HB1935

Creates a modernization and automation tax credit under the Consolidated Incentive Act of 2003, replacing the previous retention tax credit that expired in 2017

Requires businesses to invest a minimum of $25 million in project costs (increased from the previous $5 million threshold) and have been in continuous operation in Arkansas for at least two years

Sets the tax credit at up to 5% of eligible project costs, with a maximum of $2 million per fiscal year per applicant and unused credits may be carried forward up to five years

Projects must be completed within six years of the financial incentive agreement, and businesses must maintain current payroll and employment levels during the project and for 24 months after completion

Effective October 1, 2025; approved April 17, 2025