Arizona – AZ House rejects new way for big firms to use tax credits

The Miami Herald – March 2, 2017

The full Arizona House on Thursday rejected a measure allowing big manufacturing companies like chip-maker Intel to use millions of dollars of existing tax credits they can’t currently cash in, despite efforts by the Republican sponsor to make it more palatable.

The 23-36 vote rejected Rep. Jeff Weninger’s proposal, although it could be revived later under a procedural move and Weninger said he’d keep trying.

The measure had bipartisan support and opposition, with opponents on both sides of the aisle concerned about tax giveaways and supporters saying it will draw new investment and increase state income tax revenues.

The bill allows companies to get cash refunds or sales tax offsets when they build new facilities by cashing in tax credits, although Weninger amended his proposal Thursday to lower its overall cost. House Bill 2492 also contains three other major incentives benefiting manufacturers like Intel, Raytheon, Honeywell and Boeing.

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