An act TO CREATE THE BROADBAND EXPANSION AND 10 EFFICIENCY ACT, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas             A Bill
2 95th General Assembly

3 Regular Session, 2025                                            HOUSE BILL 1469

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5 By: Representative Beaty Jr.

6 By: Senator B. Johnson

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8                               For An Act To Be Entitled

9   AN ACT TO CREATE THE BROADBAND EXPANSION AND

10  EFFICIENCY ACT; TO CREATE A SALES AND USE TAX

11  EXEMPTION FOR MACHINERY AND EQUIPMENT USED IN

12  PRODUCING BROADBAND COMMUNICATIONS SERVICES; AND FOR

13  OTHER PURPOSES.

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15

16                                Subtitle

17                        TO CREATE THE BROADBAND EXPANSION AND

18                        EFFICIENCY ACT; AND TO CREATE A SALES

19                        AND USE TAX EXEMPTION FOR MACHINERY AND

20                        EQUIPMENT USED IN PRODUCING BROADBAND

21                        COMMUNICATIONS SERVICES.

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23 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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25  SECTION 1. DO NOT CODIFY. Title.

26  This act shall be known and may be cited as the "Broadband Expansion

27 and Efficiency Act".

28

29  SECTION 2. Arkansas Code Title 26, Chapter 52, Subchapter 4, is

30 amended to add an additional section to read as follows:

31  26-52-457. Broadband communications services machinery and equipment.

32  (a) As used in this section:

33  (1) "Broadband communications services" means:

34                        (A) A telecommunications service;

35                        (B) A video programming service;

36                        (C) An internet access service; and

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1          (D) Any combination of a telecommunications service, a

2 video programming service, and an internet access service; and

3          (2)(A) "Machinery and equipment used in producing broadband

4 communications services" includes without limitation the following when used

5 in whole or in part to provide broadband communications services:

6          (i) Wires;

7          (ii) Cables;

8          (iii) Fiber;

9          (iv) Conduits;

10         (v) Antennas;

11         (vi) Poles;

12         (vii) Switches;

13         (viii) Routers;

14         (ix) Amplifiers;

15         (x) Rectifiers;

16         (xi) Repeaters;

17         (xii) Receivers;

18         (xiii) Multiplexers;

19         (xiv) Duplexers;

20         (xv) Transmitters;

21         (xvi) Circuit cards;

22         (xvii) Insulating and protective materials and

23 cases;

24         (xviii) Power equipment and backup power equipment;

25         (xix) Diagnostic equipment;

26         (xx) Storage devices;

27         (xxi) Modems;

28         (xxii) Other general central office or headend

29 equipment, including without limitation channel cards, frames, and cabinets;

30         (xxiii) Equipment used in successor technologies,

31 including without limitation items used to monitor, test, maintain, enable,

32 or facilitate equipment;

33         (xxiv) Machinery;

34         (xxv) Software;

35         (xxvi) Ancillary components; and

36         (xxvii) Accessories and other appurtenances.

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1                     (B) "Machinery and equipment used in producing broadband

2 communications services" does not include:

3                     (i) Personal consumer electronics, including without

4 limitation a smartphone, computer, and tablet; and

5                     (ii) Consumer-grade modems and Wi-Fi routers.

6   (b) The gross receipts or gross proceeds derived from the sale of

7 machinery and equipment used in producing broadband communications services

8 are exempt from the gross receipts tax levied by this chapter and the

9 compensating use tax levied by the Arkansas Compensating Tax Act of 1949, �

10 26-53-101 et seq.

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12  SECTION 3. EFFECTIVE DATE. Section 2 of this act is effective on the

13 first day of the calendar quarter following the effective date of this act.

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