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Bill to lower state income tax passes House

By submitted, 12/9/21 9:26 AM

LITTLE ROCK – With a vote of 82-16, the House passed HB1001 on Wednesday.

This bill will reduce the top income tax rate for individuals from 5.9% to 4.9% incrementally over the next four years.

HB1001 changes the name of the long term reserve fund to the catastrophic reserve fund. The tax cuts are contingent upon no transfers being made out of the catastrophic reserve fund.

The bill will also combine the low- and middle-income tax tables and provide a $60 non-refundable tax credit from those individuals with an income of less than $24,700.

The House also passed HB1007 which amends income tax credit for waste reduction, reuse, or recycling equipment to allow for the use of these credits by a qualified growth project.

A qualified growth project must have common ownership with and located on the site of or adjacent to an existing qualified steel manufacturer. It would also need a total investment of at least $2 billion and create 700 new direct positions with an average annual wage of $120,000 and 200 new independent direct positions with an average annual wage of $60,000.

The House passed HB1002 which allows the transfer of up to $50 million from the general revenue allotment reserve fund to the Quick Action Closing Fund for specific economic development incentives.

The House will reconvene Thursday at 10am. All House floor session and committees are live-streamed and archived at www.arkansashouse.org.