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Committee recommends 'do not pass' on House Bill 1571 after debate over transparency and fiscal impact
Summary
After debate about transparency of tax exemptions and the program's fiscal effects, the Finance and Taxation Committee voted to recommend 'do not pass' on House Bill 1571. Members cited lack of available evidence on job creation and noted a prior commitment extending the program to 2029.
The Finance and Taxation Committee voted to recommend a "do not pass" on House Bill 1571 after members debated transparency of certain tax exemptions and whether the program has demonstrable job-creation benefits.
Representative Olson moved for a committee recommendation of "do not pass" on House Bill 1571; Representative Haggart seconded. Representative Machenbacher, who said he had previously signed on to the bill, said he would support the do-not-pass recommendation because "we dedicated ourselves out to 2029 on this bill" and he felt the committee should "live up to our obligations." Representative Steiner and others raised concerns that the committee lacked information about whether companies receiving the exemption purchased equipment in-state or hired local workers.
One committee member noted surprise that the program could be allowed to "roll again for another couple years" while the panel still sought information on outcomes, adding, "we have no proof of any jobs that have been created" and that proponents did not attend the hearing to provide data the committee had requested. Representative Porter countered by citing the fiscal note, saying the tax department reported a positive fiscal effect of about $4.2 million and arguing that a positive fiscal note implies state purchases and business activity tied to the program.
Committee members debated the data available: some said the committee had not yet been shown evidence of job creation while others said the fiscal note suggested substantial in-state purchases tied to the exemption. Several members supported letting the program continue until its scheduled expiration in 2029 to allow time to assess effectiveness; others favored additional scrutiny now.
On the roll call, the clerk recorded votes in favor of the do-not-pass recommendation from Chairman Hedlund, Vice Chair Haggart, Representative Anderson, Representative Dockter, Representative Dressler (recorded yes), Representative Machenbacher, Representative Olson, Representative Porter and Representative Foss. Representatives Niering, Steiner and Ista recorded "no" votes. The chair announced the do-not-pass recommendation carried with a tally reported in the record consistent with the clerk's count.
Votes at a glance: House Bill 1571 — Motion: Recommend Do Not Pass (roll call; committee recommendation carried).
