HB1491
Concerning The Excise Tax On Certain Beer And Sake; To Create An Excise Tax Credit For Certain Beer And Sake Produced Using Arkansas Rice; And For Other Purposes.
AI-Generated Summary
This bill proposes to amend Arkansas law concerning the excise tax on certain beer and sake. It aims to create an excise tax credit for producers of beer and sake that utilize a minimum of twenty percent Arkansas rice in their grain bill. The credit would be calculated based on the percentage of Arkansas rice used and the amount of excise tax due. The bill defines "qualified beer and sake" as those meeting the rice content requirement and subject to specific excise tax levies. It also amends existing code to provide a method for reporting and claiming this new tax credit. The intention is to incentivize the use of locally sourced rice in the production of alcoholic beverages. This legislative action seeks to adjust the tax burden for specific beverage manufacturers.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be beer and sake producers in Arkansas who use at least twenty percent Arkansas rice in their products. These producers would benefit directly from a reduced excise tax liability, potentially increasing their profit margins or allowing them to lower prices. Additionally, Arkansas rice farmers would likely see increased demand for their product, benefiting their businesses. The Alcoholic Beverage Control Division would also be involved in administering the new credit system.
Who Might Suffer?
The entities most directly negatively impacted by this bill would be beer and sake producers who do not use at least twenty percent Arkansas rice in their grain bill. These producers would continue to pay the full excise tax, making their products potentially less competitive compared to those utilizing the tax credit. Furthermore, if the tax credit leads to a significant reduction in overall excise tax revenue for the state, other state services or programs that rely on this revenue could be indirectly negatively impacted due to a potential shortfall.