Business district tax credit bill survives committee vote, heads to House
by March 31, 2009 2:20 pm 58 views
Rep. Tracy Pennartz, D-Fort Smith, has reported to The City Wire that HB 1060 made it out of committee and will face a vote tomorrow (April 1) in the House of Representatives.
HB 1060 would create an investment tax credit for renovation and development in central business improvement districts in Arkansas. The investment tax credit would be equal to 20% of the first $1 million of qualified rehabilitation or development expenditures incurred for a qualified project. The bill allows for up to $10 million in tax credits to be allowed annually.
“I’m looking forward to presenting the bill on the floor of the House,” Pennartz said. “I call this my ‘Just imagine bill,’ because when I ask my colleagues to think about the bill and support it, I ask them to just imagine what it might mean for their downtown districts.”
The bill, with more than 60 House co-sponsors, is expected to gain House passage.
Gov. Mike Beebe is opposed to the bill because of the $10 million potential hit on state revenue.
Pennartz refused to speculate as to if Gov. Beebe would veto the bill if it passes the House and Senate.
“Look, I can’t predict what the Governor will do … But if gets to that point, I hope he will not veto,” Pennartz said. (The City Wire has sought comment from Beebe’s office.)
Pennartz — who is attempting to tie funding for the bill to the General Improvement Fund in an effort to alleviate Beebe’s concern — said she appreciates Gov. Beebe’s position of having to be protective of all state revenue, but said HB 1060 requires investment in the economy before tax credits are assigned.
“It’s a significant piece of legislation and it’s the very thing we need as a state to be doing to incent private development in our towns,” Pennartz explained. “This does not just exempt people from a tax, it requires them to spend money in our economy.”
Pennartz is confident Sen. Gilbert Baker, R-Conway, the sponsor of the bill in the Senate, will have the necessary votes in that chamber.
The heads and members of the more than 60 chamber, city and trade associations on record supporting HB 1060 have created the needed momentum.
“They’ve made this happen,” Pennartz said of the support. “I wouldn’t have had all the House sponsors if they had not done (the lobbying).”