Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Corporate Relocation Tax Incentive topic
No spam. Unsubscribe anytime.
Committee approves tax-credit package to recruit corporate headquarters relocations
Summary
The Senate Revenue and Tax Committee passed House Bill 1922, which creates a package of tax credits to recruit corporate headquarters relocations, including a 10% sales-tax credit on project costs and income tax credits tied to new jobs.
The Senate Revenue and Tax Committee voted to pass House Bill 1922 following an extended sponsor presentation and staff explanation.
Sen. Jonathan Dismang (recorded as “Senator Jonathan Dismang, District 18”) introduced the bill and brought representatives from the Arkansas Economic Development Commission to the podium. Clint O’Neil of AEDC described the bill as a recruitment tool to attract corporate headquarters relocations: it provides a 10% sales-tax credit tied to project costs for relocating headquarters and an income tax credit that can be up to 50% of the taxable wages of new full-time employees. The measure is tiered by county: Tier 1 counties require larger net new job counts and higher wage thresholds than Tier 4 counties.
O’Neil explained the tiering: in Tier 1 counties the proposal would require 300 net new jobs at 150% of the lesser of the state or county average wage; in Tier 4 counties the threshold would be 150 net new jobs at 110% of the state or county average. He said the data used to set county and state average wages come from a federal public data source that combines public and private-sector wage data and is updated annually. The credits are not transferable for sale, but may be carried forward; sponsor and staff described an initial five-year period during which a corporation could offset a portion of corporate income tax, followed by a sliding scale for a subsequent five years and no benefit after ten years.
The bill requires a cost-benefit analysis and review by the Department of Finance and Administration. The committee asked clarifying questions about the duration and carryforward rules, wage calculations and tiers; staff clarified that the carryforward is allowed but credits are not sellable, and that county average wage and state average wage data are distinct data series used to determine the “lesser of” benchmark. Senator Crow moved to pass the bill and Senator Hester seconded. The chair called a voice vote; the bill passed out of committee.
Transcript records details of the tier and wage thresholds as presented in committee, but does not include the full bill text, fiscal note, or a roll-call tally.
