A Arkansas House committee approved legislation Wednesday that would set up tax credits to grow small businesses.
The House Agriculture and Economic Development committee advanced HB 1832 on a unanimous voice vote.
The "New Markets Jobs Act" of 2013 is designed to help spurn job growth through the use of tax credits in conjunction with raising capital.
Grant Tennille, director of the Arkansas Economic Development Commission told committee members the state would be a 58% investor and be on the hook for the first $100 million invested into the program.
"Without the ability to go get the money back, if the company doesn't live up to its promises, then we're at risk," Tennille says.
Representative Darrin Williams (D-Little Rock) says the legislation has Republican and Democrat cosponsors and will help Arkansas in the competitive environment of attracting new jobs to the state.