(Little Rock) (AP) – An Arkansas House panel has endorsed a proposal to cut taxes on manufacturers in the state.
The House Revenue and Taxation Committee on Tuesday voted to approve the measure, sending it to the full House for consideration. The bill would reduce the sales and use taxes on natural gas and electricity used by manufacturers.
State finance officials estimate that the proposal will decrease state revenue by about $14 million next year and roughly $25 million in subsequent years.
Legislative leaders are negotiating a $100 million package of tax reductions. A cut to the state’s income tax rate is expected to comprise more than half of that amount.
The House panel also tabled a proposal to give tax credits to people who install home solar energy systems.