Gov. Beebe opposes business district improvement bill
by March 31, 2009 11:04 am 47 views
Gov. Mike Beebe will not support a bill (HB 1060) to provide tax credits to renovation and new construction in central business improvement districts.
Sponsored by Rep. Tracy Pennartz, D-Fort Smith, 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.
It is the $10 million potential hit on state revenue that finds Beebe opposed to HB 1060.
“We can’t afford it. That’s about the long and short of it from our end,” Matt DeCample, Beebe spokesman, noted in an e-mail to The City Wire.
On Monday, more than 60 chamber, city and trade association officials who are on record supporting HB 1060 were encouraged to begin lobbying on behalf of the bill.
The bill remains in the House Revenue and Taxation Committee, and could face a committee vote as early as today (Mar. 31).