In an effort to present itself as more business-friendly, the Arizona House of Representatives recently gave final approval to a bill that would give $50 million in tax breaks over three years to insurance companies that invest in high-tech corporations in that state.
Sponsored by Republican House Speaker Andy Tobin, the bill in question is designed to move the savings that insurance companies will receive from lowered taxes into a new high tech development fund that falls under the purview of the Arizona Commerce Authority.
Under the terms of the bill, insurers will receive a credit of up to $10 million against their premium taxes in the budget year that begins on July 1st, and $20 million over the next two years for investments. Unused credits may be carried forward for up to fifteen years if companies are unable to use them in the year they are actually used.
On the same day this bill passed the house, a second tax bill that had been on track for initial approval was pulled from consideration. That bill, authored by Represenative Tom Forese, and also backed by Tobin, would have reduced the assessed property tax rate on fixtures and other personal property owned by expanding businesses that add jobs. Before leaving committee, it was amended to include a $58 million/year reduction in taxes on the self-employed.
That bill, Forese said, will require more changes before it is brought to the House floor.