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Minutes for SB347 - Committee on Commerce, Labor and Economic Development
Short Title
Enacting the attracting powerful economic expansion act to provide for tax and other incentives for projects in specified industries, or for national corporate headquarters, that involve a significant capital investment, including a refundable tax credit for a portion of the investment, reimbursement of certain payroll costs and training costs, retention of certain payroll withholding taxes, a sales tax exemption for project construction and a property tax incentive for projects located in a foreign trade zone.
Minutes Content for Mon, Feb 7, 2022
J.G. Scott, Director of Legislative Research gave a presentation on the proposed governors bill, senate bill, and house bill and stood for questions. (Attachment 1)
Chairman Tarwater joined the meeting.
Chairman Tarwater opened the discussion on SB347..
Representative Hoffman moved to pass SB347 favorably, seconded by Representative Dodson
Charles Reimer, Revisor gave an overview of the bill and stood for questions.
At the request of Chairman Tarwater, Paul Hughes, Deputy Secretary of Commerce stood for questions.
Chairman Tarwater moved, seconded by Representative Long to adopt the balloon amendment that addressed concerns regarding what qualifies as an investment and other conceptual language. Motion carried.(Attachment 2)
Representative Highland moved, seconded by Representative Croft to adopt a 5-year phased-out clawback balloon amendment.(Attachment 3)
Discussion ensued.
Motion carried.
Chairman Tarwater moved, seconded by Representative Long to adopt the amendment to require reporting of employee residence by state.
Discussion ensued.
Motion carried.
Chairman Tarwater moved, seconded by Representative Long to amend to provide the investment tax credit would be paid out over 10 years and the State Finance Council would not be
permitted to shorten the period and requiring the State Finance Council to approved the offer from the Department of Commerce to any firm.
Representative Clayton had a substitute motion.
Representative Clayton moved, seconded by Representative Xu to provide the investment credit to be paid out over 5 years.
Discussion ensued. The motion was withdrawn.
Chairman Tarwater returned to the motion to amend made by Chairman Tarwater. Motion carried.
The following members requested their "nay" votes be recorded: Representative Burroughs, Representative Clayton, Representative Ruiz, Representative Stogsdill
Representative Hoffman moved, seconded by Representative Long to create Senate Substitute for SB347 and pass favorably. Motion carried.
Chairman Tarwater adjourned the meeting at 3:25 p.m.
The next scheduled meeting will be February 8, 2022.
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