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Senate committee approves HB 1490 to update Consolidated Incentive Act thresholds and NAICS codes
Summary
House Bill 1490 passed the Senate Agriculture, Forestry & Economic Development committee; the bill amends the Consolidated Incentive Act across 11 statutory locations to update eligibility thresholds, align NAICS classifications, and implement a tiered structure based on local economic indicators.
The Arkansas Senate Agriculture, Forestry & Economic Development Committee passed House Bill 1490 (HB 1490), an omnibus amendment to the Consolidated Incentive Act that adjusts parameters and eligibility thresholds across 11 incentive programs and updates North American Industry Classification System (NAICS) codes.
Sponsor Senator Pitch said HB 1490 does not create new incentive programs but updates statute to bring thresholds and parameters in line with more recent economic conditions; he described the measure as an omnibus cleanup across many sections of existing law. The bill revises eligibility by creating a tiered class structure (class 1 through class 4) determined by four metrics — unemployment, poverty rate, per capita personal income and population change — divided into quartiles to target incentives toward areas with greater need.
Senator Malek asked for detail on how the parameters are adjusted. Pitch replied that the tiering approach uses the four metrics above and noted that the changes aim to align incentive targets with expected minimum wage changes; the sponsor asserted a $3.53 return on every dollar from the minimal parameter changes, a claim not accompanied by supporting documentation in the hearing record.
Senator Stearch raised a question about provisions that lower the in-state revenue threshold for eligibility from 75% to 51% for businesses with significant out-of-state-derived revenue. Senator Pitch deferred to AEDC staff for a technical rationale. Renee Deddy of the Arkansas Economic Development Commission said the change was intended to make the incentives more encompassing for competitive companies (she cited an example of firms with 71% out-of-state activity that nevertheless work closely with Arkansas firms) and said the change aligns Arkansas with competing states.
Mike Preston, identified as director of the Arkansas Economic Development Commission, said the statute had not been substantially updated since February 2003 and welcomed the NAICS cleanup and other technical updates reflected in the bill.
An unidentified committee member moved to pass HB 1490; the motion was seconded and the measure carried by voice vote. The transcript does not record a roll-call tally or named votes. After the vote the committee adjourned.
The transcript does not include detailed fiscal estimates, the full statutory text, or the legislative next steps following committee approval.
