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Committee clears technical fix to equity investment tax credit, removes one‑year resale restriction
Summary
Lawmakers voted to remove a one‑year restriction on resale of equity investment tax credits so investors can sell credits during the nine‑year usage window; the Arkansas Economic Development Commission approves credits, the sponsor said.
The Senate Agriculture committee voted to pass House Bill 15‑46, a technical correction that removes a one‑year restriction on resale of equity investment tax credits.
Representative Eaves, who presented the bill, told the committee the Arkansas Economic Development Commission approves the credits and that investors currently have up to nine years to use the credits. He said the one‑year resale restriction was likely inserted at the agency level without a clear need, and removing it allows holders without current Arkansas tax liability to sell credits to buyers who can use them.
Eaves said secondary sales of credits typically net about $0.809 on the dollar to the seller; the change is meant to address the time value of money and improve liquidity for investors in Arkansas companies. No public testimony opposed the change, and the committee moved and passed the bill by voice vote.
