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HB 1491

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.

2025 Regular Session Introduced by Jonathan Dismang and 2 co-sponsors

Arkansas law now offers excise tax credits to beer and sake makers using in-state rice, supporting local agriculture through tax incentives for producers.

Notification that HB1491 is now Act 874
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WeVote Research Nonpartisan
Bill Summary · HB 1491

Legislative bill overview

HB 1491 establishes an excise tax credit for beer and sake producers who use Arkansas-grown rice as an ingredient in their products. The bill creates a financial incentive mechanism to encourage in-state agricultural use while modifying existing excise tax structures. This legislation has been signed into law as Act 874.

Why is this important

The bill directly supports Arkansas's rice farming industry by creating economic incentives for breweries and sake producers to source locally, potentially increasing demand for state agricultural products. It represents an attempt to link agricultural production with beverage manufacturing, which could have downstream effects on both industries' viability and job creation in rural areas.

Potential points of contention

  • Excise tax complexity: Adding credits to existing excise tax systems creates administrative complexity and potential compliance challenges for producers and tax collectors
  • Market distortion: Tax credits favoring local ingredients may disadvantage out-of-state producers or create competitive inequities in the beverage market
  • Revenue impact: The state may experience reduced excise tax revenue if credits significantly lower tax obligations, affecting budgets for alcohol-related programs
  • Scope limitations: Unclear whether the credit applies to all beer/sake producers or only certain categories, and what the credit amount or maximum claim restrictions are

Compiled from official sources — confirm details with the bill’s official record.

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