AR SB568

Creates sales and use tax exemptions for qualified lithium facilities investing at least $100 million within 10 years of construction start and paying at least $3 million annually in employee compensation, covering equipment, electricity, construction services, and facility operations

Expands the definition of "solid waste" to include electronic waste and lithium-ion battery cells/packs for purposes of the income tax credit for waste reduction, reuse, or recycling equipment

Sets severance tax on salt water used for bromine or lithium extraction at $2.45 per 1,000 barrels (42,000 gallons), with existing brine taxes of 20 cents and 10 cents per 1,000 barrels now applying to lithium extraction

Allocates salt water severance tax revenue with first $325,000 annually split between state funds (75% general revenue, 25% County Aid Fund), with amounts exceeding $325,000 directed 97% to County Aid Fund for distribution to county road funds based on production location

Effective October 1, 2025, and approved April 22, 2025