In the wake of Monday’s announcement that Hewlett Packard would lay off up to 500 workers at its Conway customer service facility, Arkansas economic officials are working with the computer maker to evaluate state incentives and potential clawback provisions.
State incentives included:
•Tax Back – provides sales and use tax refunds on building materials and taxable machinery.
• Advantage Arkansas – provides 1% income tax credit for payroll for new jobs for 5 years.
• Create Rebate – provides a cash rebate equal to 5% of payroll for 10 years
• $10 million Governor’s Quick Action Closing Fund – for infrastructure for the building that will be permanent to the building such as generators, cabling and other needs.
From our content partner, KUAR-FM 89 News:
State Economic Development officials say Hewlett Packard no longer fulfills a benchmark that allows them to receive the same incentives established when its Conway facility opened in 2010.
Grant Tennille, director of the Arkansas Department of Economic Development, told KUAR News that after laying off 500 employees, HP no longer has the 1,000 workers at its service center which was a requirement for the computer company to receive its full-incentive package from the state.
He said the state will work with HP to determine how much money needs to be returned.
“As they begin this process of laying off and reducing their workforce we’ll work with them to recapture that money and we’ll turn around and put that money back with another project. So I think the project has worked, is working and will work precisely as it is designed,” said Tennille.
He said with around 900 HP workers still at the facility, his department will work fill out the leftover space.
You can read the full report from KUAR at this link.
Talk Business Staff
Latest posts by Talk Business Staff (see all)
- Recording Conveys Conversation Between Shoffner, Broker - March 8, 2014
- Beebe Uses Radio Address To Discuss Private Option - March 8, 2014
- Former Subordinate Says Shoffner Ignored Warnings - March 7, 2014