TO AMEND THE CONSOLIDATED INCENTIVE ACT OF 2003; TO CREATE AN INCOME TAX CREDIT FOR RELOCATING CORPORATE HEADQUARTERS TO THIS STATE; AND TO ENCOURAGE CORPORATIONS TO RELOCATE TO ARKANSAS.

Fiscal Impact Statement Bill: HB1922 Bill Subtitle: TO AMEND THE CONSOLIDATED INCENTIVE ACT OF 2003; TO CREATE AN INCOME TAX CREDIT FOR RELOCATING CORPORATE HEADQUARTERS TO THIS STATE; AND TO ENCOURAGE CORPORATIONS TO RELOCATE TO ARKANSAS. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Rep. Maddox and Sen. Dismang Basic Change: HB1922 makes several changes to the Consolidated Incentive Act of 2003. Specifically, HB1922: • Provides that the investment tax credit now available to offset an applicant's income tax liability may alternatively be used to offset their sales tax liability, based on the election made by the applicant; • Provides that the investment tax credit amount allowed may be up to 10% of eligible project costs rather than the set 10% credit under current law; • Repeals the income tax credit and the sales and use tax credit for technology-based enterprises; • Creates a new income tax credit for businesses that relocate a corporate headquarters to Arkansas. This new credit is equal to 50% of the payroll for qualifying employees; and • Provides that a business receiving any