Sen. Lincoln, Whirlpool say tax-credit bill would preserve jobs

U.S. Sen. Blanche Lincoln was in Fort Smith on Friday (July 15) to tie continued job growth at Whirlpool’s Fort Smith plant with the passage of HR 4213 — a controversial catch-all bill that would extend unemployment benefits 99 weeks in some cases.

HR 4213, sometimes referred to as the Tax Extenders Act or the American Jobs and Closing Tax Loopholes Act of 2010, would help appliance makers like Whirlpool in several ways. It would provide them tax credits for research and development, and it would provide tax credits to consumers who buy the energy-efficient refrigerators, washers, dryers, icemakers and other appliances.

The bill is a broad compendium of new and extended deductions, investment credits, tax credits, accounting changes for expenses for a wide variety of special interest groups. Specific items in the legislation now awaiting U.S. Senate consideration include:
• Credits for electricity produced at certain open-loop biomass facilities;
• Tax free distributions from individual retirement plans for charities;
• 7-year recovery period for motorsports entertainment complexes;
• Reduction in corporate rate for qualified timber gain;
• American Samoa economic development credit;
• Extension and improvement of premium assistance for COBRA benefits; and,
• Providing a grant for the purchase of energy efficient appliances in lieu of a tax credit.

In a statement issued after an 11:30 press conference, Lincoln’s office noted that HR 4213 “would allow U.S. producers of energy-efficient appliances, like Whirlpool, to enjoy the same tax credit already available to other renewable energy producers.” The statement also said Lincoln supports the HR 4213 provision that would make permanent a research and development tax credit. The Lincoln statement said the R&D credit is a “key incentive to ensuring America’s leadership in innovation and economic activity, returning $2 into the economy for every dollar of credit spent.”

Kenny Thompson, division vice president for Whirlpool, said production of energy efficient appliances in Fort Smith has resulted in the addition of 970 jobs in 2010. The plant employs around 2,000.

Prior to the Friday morning press conference, a plant tour and meetings were held with Lincoln and her staffers, Becky Thompson, assistant director of the Arkansas Economic Development Commission, and Whirlpool CEO Jeff Fettig.

The City Wire pressed Whirlpool spokeswoman Jill Saletta about the real purpose of the meeting between the top corporate, state and federal officials. Was it just to lobby for HR 4213? Were their discussions on the future of Whirlpool’s Fort Smith plant with respect to state or federal incentives to retain or expand the plant?

The future of Whirlpool’s Fort Smith refrigerator-production plant has been a cause for concern following the November 2003 announcement by Whirlpool of a global reorganization plan. The news since November 2003 has been troubling, with Whirlpool announcing numerous production cuts and layoffs that has seen employment in Fort Smith drop from about 4,600 in early 2006 to around 2,000 today.

Saletta and Thompson said the visit was just to build relationships and lobby for support of HR 4213, with Thompson saying she and other AEDC personnel were there to show the state’s support for existing industry.

A Whirlpool announcement committing to or expanding in Fort Smith that included Lincoln’s involvement could help her re-election bid against U.S. Rep. John Boozman, R-Rogers. Boozman is favored to win the race, and is likely to poll well in the politically conservative Fort Smith region.

“Anything’s possible, but  it would be pure speculation on my part,” replied Roby Brock, political analyst/reporter and former head of the Arkansas Election Commission, when asked about the political aspect of a Whirlpool announcement prior to November.

Brock suggested politics would likely take a back seat to the economic benefits in the mind of Fort Smith area residents if such a scenario played out.

“If there is a larger story to today’s event and it results in more jobs or more stability for the Fort Smith Whirlpool plant, I think that has to be viewed as a positive for the community,” he explained.

A former worker at Whirlpool’s Fort Smith plant was part of the bitter primary election campaign between Lincoln and Lt. Gov. Bill Halter. In early April, Arkansans for Change paid for an ad in which Sharon Hankins of Greenwood said Lincoln’s votes on major trade bills cost her a job. Arkansans for Change was a labor-funded group. It was later learned that Hankins was called back to work, but declined so she could continue receiving college support under the Trade Adjustment Training program.