HB1521
To Repeal Certain Unused, Underused, Or Unfunded Tax Incentives.
Last Action (Feb. 18, 2025): WITHDRAWN BY AUTHOR
Sponsors
AI-Generated Summary
House Bill 1521 proposes the repeal of various state tax incentives, credits, and programs that are identified as unused, underused, or unfunded. The bill specifically repeals statutes related to Centers for Applied Technology, research partnerships between private industry and universities, and technology development funding under the Arkansas Economic Development Commission. It also terminates the Arkansas Public Roads Improvements Credit Act, which allowed for tax credits for contributions to public road construction projects. Additionally, the bill removes provisions regarding the promotion of medical and technological infrastructure and repeals sales and use tax exemptions related to the repair and replacement of certain machinery and equipment. The overall goal is to eliminate outdated or inactive economic development incentives within the Arkansas Code.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be the State of Arkansas and its taxpayers, as the measure seeks to streamline the state’s tax code and eliminate programs that may no longer be functioning as intended. By repealing unused or underused tax credits and incentives, the state government can reduce administrative complexity and potentially ensure that future tax expenditures are more targeted and effective, rather than maintaining obsolete statutory provisions.
Who Might Suffer?
The groups most directly and negatively impacted include private entities and corporations that might have utilized or relied upon these tax credits—such as the Arkansas Public Roads Improvements Credit or sales tax exemptions for equipment repair—to lower their tax burdens. Additionally, universities and research institutions that previously partnered with the state under these specific economic development frameworks may face a reduction in state-supported funding or institutional mechanisms that facilitated private-sector collaboration. These entities will lose the specific financial benefits and administrative support channels previously authorized by the repealed sections of the code.
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