Senate committee approves tax-credit deal for Natural State Renewables after removing state buyback

The Senate Revenue & Tax Committee approved House Bill 1303, as amended, authorizing a tax-credit package tied to Natural State Renewables’ planned sustainable aviation fuel facility in south Arkansas. The committee adopted an amendment that removes language authorizing the state to buy back certified tax credits and prevents the credits from being sold to third parties.

The amendment and final passage matter because the original bill had allowed the company to sell up to $10 million of certified credits per year back to the state at 80% of face value; the amendment eliminates that buyback and keeps credits with the taxpayer, redeemable only against the taxpayer’s liability. Department of Finance and Administration (DFA) staff told the committee the bill, both before and after the amendment, carried a revenue-neutral fiscal estimate when modeled under the bill’s required cost-benefit and clawback provisions.

Senator Matt Stone, who introduced the amendment and presented the project, described the company’s plans and local economic impacts. “They’re gonna use sawdust,…