93rd Arkansas Basic Meeting / Gross Earnings Tax: Proposed Exemption for Certified Solar Methods – JD Supra

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The 93rd Arkansas General Assembly convened for an ordinary session on January 11th.

House Bill 1628 (“HB 1628”) was introduced to provide an exemption from Arkansas gross income tax for qualified solar systems.

HB 1628 is sponsored by the following representatives:

  • Ashley Hudson (Little Rock)
  • Denise Jones Ennett (Little Rock)
  • Joe Jett (Success)

The bill would add an additional section to Arkansas Code Title 26, Chapter 52, Sub-Chapter 4 (Exceptions).

Proposed Ark. Code Ann. Section 26-52-453 (production facilities for solar energy generation) would contain definitions for:

  • qualifying solar systems

This definition requires that such devices be designed as follows:

  • Capture, store and convert solar energy into electricity; and
  • Generate up to a maximum peak output of 20 megawatts of alternating current. and
    • Bought to be used for any purpose by:
    • Business unit;
    • Municipality, county or other political subdivision;
    • School district, government agency, or public college; or
    • Any person or company, including but not limited to their tenants, trustees and recipients, who own or operate equipment or facilities in that state, in order to:
      • Generation, generation, transmission, supply or supply of gas, electricity, steam or any other means of producing light, heat or electricity to or for the public for compensation; or
      • Diverting, developing, pumping, damming, distributing or providing water to or for the public to compensate

These qualified solar systems include (without restriction):

  • Solar modules
  • Inverter
  • wiring
  • Racking
  • Tracking equipment
  • Batteries
  • Other equipment components

HB1628 has been referred to the House Revenue and Taxation Committee.

A copy of the invoice can be downloaded here.


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