Signed by Governor Mike Beebe

Vote Smart's Synopsis:

Vote to pass a bill that appropriates funding for a steel mill and establishes tax exemptions for qualified steel manufacturers.

Highlights:

• Authorizes the Arkansas Development Finance Authority to issue state bonds of up to $125 million to Big River Steel, LLC. for the acquisition, development, construction, and operation of a mini-mill steel manufacturing facility in Mississippi County (Sec. 2).

• Exempts a manufacturer of steel from the gross receipts tax beginning on the date that production, processing, and testing equipment are first in operation (Sec. 6).

• Requires a manufacturer of steel to obtain a certification that the following criteria are met in order to be exempt from the gross receipts tax (Sec. 5):
• It is a manufacturer of steel;
• It operates a steel mill which began production after January 1, 2013; and
• It has invested, between January 1, 2013 and December 31, 2015, at least $500 million in the steel mill.

• Requires a manufacturer of steel to complete the following actions in order to continue to be exempt from the gross receipts tax after December 31, 2018 (Sec. 5):
• Annually meet the original eligibility requirements for the exemption; and
• Employ at least 300 individuals at an average wage each of $70,000 per year

Full Bill Text