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House Bill 1624 (“HB1624”) was introduced amending the Water Resource Conservation and Development Incentives Act (“Act”).

The legislation is sponsored by Representative Beaty, Jr., and Senator Gilmore.

Arkansas Code § 26-51-1008(a) concerning the income tax credit for surface water conversion within critical areas would be amended to include Chicot County.

A key concern for areas of the State of Arkansas is its dependence on groundwater. In some areas this resource is not being adequately recharged. As a result, the Arkansas General Assembly a number of years ago created the Act to encourage water users to invest in constructing impoundments, converting from groundwater use to surface water use when available, and practice land leveling.

The Arkansas Natural Resources Commission administers this program.

The income tax credit is currently limited to projects that are designated critical groundwater areas in counties contiguous to counties with areas designated critical groundwater areas. Chicot would be added as an area eligible for the income tax credit.

HB1624 has been referred to the House of Representatives Revenue and Taxation Committee.

A copy of HB1624 can be found here.