WeVote
Log In

Bill

Bill

HB 1922

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.

2025 Regular Session Introduced by Jonathan Dismang and 1 co-sponsor

HB 1922 offers a 50% income tax credit for corporations relocating their headquarters to Arkansas, boosting job creation and economic growth across the state.

Notification that HB1922 is now Act 881
0
WeVote Research Nonpartisan
Bill Summary · HB 1922

Summary of HB 1922: Income Tax Credit for Corporate Relocation

Bill Number: HB 1922
Title: 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
Status: Now Act 881
Introduced: March 31, 2025

Purpose and Intent

HB 1922 aims to incentivize corporations to relocate their headquarters to Arkansas by amending the existing Consolidated Incentive Act of 2003. The bill introduces a new income tax credit specifically for businesses that move their corporate headquarters to the state, thereby promoting economic growth and job creation.

Key Provisions

The bill includes several significant changes to the Consolidated Incentive Act of 2003:

  • New Income Tax Credit:

    • Corporations relocating their headquarters to Arkansas can receive an income tax credit equal to 50% of the payroll for qualifying new, full-time permanent employees.

  • Eligibility Criteria:

    • The number of employees and wage requirements depend on the county tier:
    • Tier 1 County: At least 300 employees, paying 150% of the average wage.
    • Tier 2 County: At least 250 employees, paying 125% of the average wage.
    • Tier 3 County: At least 200 employees, paying 115% of the average wage.
    • Tier 4 County: At least 150 employees, paying 110% of the average wage.

  • Investment Tax Credit Changes:

    • The investment tax credit can now be used to offset either income tax or sales tax liability, based on the applicant's choice.
    • The maximum allowable investment tax credit is increased to up to 10% of eligible project costs.

  • Repeal of Existing Credits:

    • The bill repeals the income tax credit and sales/use tax credit for technology-based enterprises.

  • Compliance Requirements:

    • Businesses must certify their annual payroll figures timely to retain their tax incentives. Failure to do so may result in losing some or all benefits.

  • Credit Utilization Timeline:

    • The income tax credit can be utilized over a ten-year period, with the following percentages applicable:
    • Years 1-5: 100%
    • Year 6: 80%
    • Year 7: 60%
    • Year 8: 40%
    • Year 9: 20%
    • Year 10: 0%

  • Expiration of Credits:

    • Unused credits cannot be carried forward, sold, or transferred and will expire if not utilized.

Impact

The bill is designed to attract new businesses to Arkansas, which could lead to job creation and economic development. It is expected to be revenue neutral, as any approved project must demonstrate a positive cost-benefit to the state.

Implementation Timeline

  • The provisions of HB 1922 will be effective for tax years beginning on or after January 1, 2026.

Conclusion

HB 1922 represents a strategic effort by the Arkansas legislature to enhance the state's appeal to corporations considering relocation. By providing substantial tax incentives, the bill aims to foster a more robust economic environment and increase employment opportunities within the state.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.