Ark. Code Ann. § 26-53-148 (2026)

History. Acts 2007, No. 185, § 2; 2009, No. 691, § 2; 2009, No. 695, § 2; 2011, No. 754, § 3; 2011, No. 983, § 15; 2013, No. 1411, § 2; 2019, No. 910, §§ 3928, 3929.

A.C.R.C. Notes. Acts 2007, No. 185, § 3, provided:

“All existing exemptions from the gross receipts tax levied by the Arkansas Gross Receipts Act or 1941, § 26-52-101 et seq., and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., for natural gas or electricity used in manufacturing or other purposes that are otherwise provided by law shall continue in full force and effect.”

Acts 2009, No. 691, and Acts 2009, No. 695, are identical acts that amended subsection (a) of this section. Acts 2009, No. 695, was used to codify subsection (a) of this section pursuant to § 1-2-207(a).

Acts 2011, No. 754, § 1, provided:

“The General Assembly finds that:

“(1) The cost of manufacturing continues to climb;

“(2) The state unemployment rate is extremely high, and the economy has dramatically affected manufacturers, which has resulted in numerous layoffs;

“(3) Decreasing the sales and use tax rate on natural gas and electricity used by manufacturers would increase employment and production, which, in turn, would provide more lucrative employment opportunities for Arkansans;

“(4) There is a need for additional electrical generation in the state to supply the utilities that serve state individuals and industry;

“(5) Natural gas-fired, combined-cycle generation is the cleanest and most efficient energy produced from fossil fuel used to generate electricity, and it is in the best interest of the state to encourage the use of this technology for generating electricity;

“(6) The state is at a competitive disadvantage compared to the surrounding states to attract and retain the building and operating of high-efficiency electric power generators because the state imposes a six percent (6%) sales tax on the purchase of natural gas used to generate the electricity;

“(7) The state has an abundant supply of natural gas to power high-efficiency, combined-cycle technology electric power generators, and the disadvantage of the high tax should be removed as an incentive to utilities and private industry to construct and operate high-efficiency generating facilities; and

“(8) Other manufacturers in the state enjoy a tax reduction on natural gas used in manufacturing, and these high-efficiency, combined-cycle technology electric power generators that manufacture electricity for resale on the wholesale market should be granted the same exemption as other manufacturers.”

The amendments to this section by Acts 2011, No. 983, § 15, are superseded by the amendments to this section by Acts 2011, No. 754, § 3, pursuant to Acts 2011, No. 983, § 23.

Amendments. The 2009 amendment by identical acts Nos. 691 and 695 inserted (a)(3) and redesignated the subsequent subdivisions accordingly.

The 2011 amendment by No. 754 substituted “26-53-107” for “26-53-107(a)-(d)” in (a)(1) and (a)(6)(B); inserted (a)(4) and (c) and redesignated the remaining subdivisions accordingly; rewrote (b); substituted “established under subsection (f)” for “established in accordance with the rules issued under subsection (e)” in (d); and deleted “have and be invested with full power and authority to” preceding “promulgate” in (f).

The 2011 amendment by No. 983, in (a)(1), deleted “Beginning July 1, 2007” at the beginning and substituted “three and one-eighth percent (31/8%)” for “of four and three-eighths 20 percent (4.375%)”; deleted former (a)(2) and (a)(3)(A) and redesignated former (a)(3)(B)(i) through (iii) as (a)(2)(A) through (C), and former (a)(3)(C)(i) and (ii) as (a)(3)(A) and (B); substituted “subdivision (a)(1)” for ”subdivision (a)(3)(A)” in (a)(2)(A); in (a)(2)(B), substituted “subdivision (a)(2)(A)” for “subdivision (a)(3)(B)(i),” “§ 26-52-319(a)(2)” for “26-52-319(a)(3)(B),” and “this section and § 26-52-319” for “Acts 2007, No. 185, as well as the additional reduction provided by Acts 2009, No. 695”; substituted “subdivision (a)(2)(B)” for “subdivision (a)(3)(B)(ii)” in (a)(2)(C); in (a)(3)(A), substituted “subdivision (a)(1)” for “subdivision (a)(3)(A)” and “subdivision (a)(2)” for “subdivision (a)(3)(B)”; and substituted “subdivision (a)(3)(A)” for “subdivision (a)(3)(C)(i)” in (a)(3)(B).

The 2013 amendment redesignated former (a)(1) as present (a)(1)(A), and substituted “July 1, 2014” for “July 1, 2007” and “one percent (1%)” for “four and three eighths percent (4.375%)”; deleted (a)(2) through (a)(4), and redesignated former (a)(5) through (a)(7) as present (a)(2) through (a)(4); inserted (a)(1)(B); substituted “Director of the Department of Finance and Administration” for “director” in present (a)(2)(A); inserted “or sector 115111” in (b)(1); in (c)(1), inserted “otherwise” and substituted “this subsection” for “subdivision (c)(2)(C) of this section”; substituted “one-eighth” for “one-eighths” in (c)(2)(A) and (c)(2)(B); inserted (c)(2)(D); deleted former (c)(3); and redesignated former (c)(4) as present (c)(3), and substituted “stated” for “set out.”

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(2)(A); and substituted “secretary” for “director” in (a)(2)(B)-(C), twice in (e), and in (f).