BUSINESS DEVELOPMENT (2010 Legislative Agenda) - Southeast Arkansas Cornerstone Coalition, Inc.

Legislative Agenda
Infrastructure
Quality of Life
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2010 Legislative Agenda - Business Development

Energy Tax Reduction on Manufacturers

Background: In 2007 the Coalition supported the elimination of the regressive tax levied

on manufacturers throughout the state of Arkansas. The measure, in part, won the

support of Governor Beebe on reducing the tax by half by the year 2010. While reducing

the tax by half certainly helps our economic development efforts, Arkansas is still at a

disadvantage relative to surrounding states having little or no comparable tax.

Goal:

A complete and permanent reduction in the sales and use tax on energy used in the

process of manufacturing as defined by the NACIS cods used by the Arkansas Economic

Development Commission.

Objective:

To increase the number of jobs and investment throughout the Cornerstone

region.

Scope:

Statewide

Alternative Fuels Development

Background: Alternative fuels will be the next economic engine in the United States.

Arkansas is already seeing steadily increasing investments in the Fayetteville Shale Play.

Small and large bio-diesel plants are coming on-line at a steady pace across the state. To

take full advantage of this emerging industry, Arkansas needs to assist counties, cities and

economic development organizations make appropriate investments in infrastructure to

lower the costs of doing business in our state and allow businesses to put additional capital

into the latest cutting-edge technology in the plants in our state.

Goal:

Develop and fund infrastructure grants for the alternative fuels industry including

but not limited to tank farms at public ports, short-haul pipeline, containment pans at

loading sites, and other infrastructure as needed based upon company investments and

job creation.

Objective:

To increase the number of jobs and investment throughout the Cornerstone

region and become the lead state for the alternative fuels industry.

Scope:

Regional

Alternative Fuel Demand

Distribution Incentive

Background: As alternative fuel production increases Arkansans should have access to

these supplies. Arkansas distributors should be encouraged to purchase and distribute

Arkansas alternative fuels. Currently, an estimated 90 percent of alternative fuels being

produced are shipped out of state for consumption with 90 percent of the remainder used

by the producer in agriculture operations.

Goal:

To establish a distribution incentive of $ .05 per gallon paid to distributors for each

gallon distributed to retail outlets.

Objective:

To increase the demand for Arkansas alternative fuels thereby increasing the

number of jobs in the alternative fuels industry in the Cornerstone region.

Scope:

Statewide

Consumption Incentive

Background: To further increase demand for Alternative fuels produced in the State of

Arkansas an incentive should be developed to reward school districts for purchasing

Arkansas alternative fuels. State vehicles should be equipped and mandated to burn

Arkansas alternative fuels.

Goal:

To create maximum demand in the Arkansas alternative fuels Arkansas School

Districts should be paid an additional $.25 per child once the district purchases its 100,000

th gallon of Arkansas Bio-diesel during a school year. All state owned and operated

vehicles should use an Arkansas produced bio-fuel by the year 2012.

Objective:

To increase the number of jobs and investment in the Cornerstone region.

Scope:

Statewide

Establish an Alternative Fuels Federal Rebate Clearinghouse

Background: The United States Federal Government provides a $1.00/gallon rebate to

blenders of biodiesel. Producers may apply for a license to accept the rebate and pass

the savings onto blenders, however, the producer must then wait an average 60-90 days

for the rebate. Distributors are reluctant to allocate cash-flow to this rebate and led to the

development of the license for producers to accept the blenders rebate.

Goal:

Arkansas should establish a clearinghouse for all alternative fuel federal rebates.

The clearinghouse should have the capacity to issue checks to producers or distributors

based upon expected rebate checks from the Federal Government.

Objective:

To free up cash-flow for businesses to continue to invest in capital and

feedstock enhancing productivity and employment. This measure would also get the

attention of the bio-fuels industry and lead to more capital investments from companies not

currently located in Arkansas.

Advocate for additional funding for the Arkansas
Economic Development Commission

Background: The Arkansas Economic Development Commission is the primary state

agency

charged with recruiting new business and industry into the state of Arkansas and

working with

exiting industries and communities to secure new capital and increase the

quantity and quality of

jobs available in our state.

Goal:

Increase the Economic Infrastructure Fund (INCLUDE EIF IN FUNDING CATEGORY

“A”)

grant dollars available through the Arkansas Economic Development Commission to

$25 million,

increase the amount of discretionary Incentive money to $2 million, and

increase the amount of

payroll dollars to allow for the hiring of 5 additional project/business

retention managers at the

Director’s discretion.

Goal:

Defeat any measure to eliminate the Create/Rebate Incentive.

Objective:

To increase the number of jobs and investment in the Cornerstone region.

Scope:

Statewide

Advocate for increasing the Governor’s Quick Action
Closing Fund

Background: Economic development projects are fast moving and fluid with decisions of

hundreds of jobs and millions of investment dollars hanging in the balance with one state

pitted

against another to win the project. The Governor of the State of Arkansas, popularly

elected by

all the citizens of Arkansas should have at his discretion adequate funds to

close a deal quickly

and effectively. The Governor’s Quick Action Closing Fund provides

such a mechanism.

Goal:

The Governor’s Quick Action Closing Fund should be increased in dollar amount

sufficient

for the job.

Objective:

To increase the number of jobs and investment in the Cornerstone region.

Scope:

Statewide

Advocate for the lowering of Thresholds for Amendment 82

Background: The Flour-Daniels study, commissioned by the Arkansas State Legislature

noted

that Arkansas was best equipped to handle medium-sized economic development

projects.

Arkansas certainly needs the mechanism Amendment 82 provides to realistically

compete with

other states for “super projects.” Arkansas is a rural state with greater

infrastructure needs than

current funds can meet. For most Arkansas cities and counties,

an economic development

project employing 200 people would require more infrastructure

than cities, counties and the

Arkansas Economic Development Commission could

immediately fund. Lowering the Thresholds

for Amendment 82 would remedy this shortfall.

Goal:

Lower the qualifying threshold for Amendment 82 to 200 new jobs and $200 million

capital investment.

Objective:

To increase the number of jobs and investment in the Cornerstone region.

Scope:

Statewide

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© Southeast Arkansas Cornerstone Coalition, Inc.
P.O. Box 3084 | UAM - Harris Hall Room 331 | Monticello, Arkansas 71656
Phone 870-460-1224 | Fax 870-460-1450 | Email seymore@searkcornerstone.org