Business Weekly
June 29 – July 3, 2009
- Tax Cuts Become Law Today
- Next Small Business Council Meeting Scheduled for July 9th
- Final Leadership Arkansas Class III Session and Graduation Held
- Leadership Arkansas Class IV Applications Now Available
- State Chamber Membership Development Staff Rank in Top 10 in Country
- American Recovery and Reinvestment Act Provides Energy Incentives
- Welcome to Our New Members
- Thanks to Our Pinnacle Members
- Calendar of Events
By Rob Moritz
LITTLE ROCK —
The tax cut reducing the state sales tax on groceries — halved from 6 percent to 3 percent in 2007 — to 2 percent goes into effect today, the beginning of the state’s new fiscal year.
“More and more people are eating at home because of the economy, and when they balance (the food tax cut) with the restaurant tax it’s a pretty good deal,” said Polly Martin, president of the Arkansas Grocers and Retail Merchants Association.
Many cities around the state tax prepared food and use the revenues for tourism or promotion, Martin said.
A $10 million reduction in the sales tax manufacturers pay for utilities also goes into effect today, as do hundreds of state appropriations approved by the Legislature during this year’s regular session.
Richard Weiss, director of the state Department of Finance and Administration, said Monday that he hopes to know by Thursday, when the monthly revenue report is released, how much of a budget surplus the state will have at end of the current fiscal year.
Weiss said it would be mid-August before DF&A knows how much carryover money state agencies will have, but estimated that amount at $10 million to $20 million.
Gov. Mike Beebe, who promised during his 2006 campaign to eventually eliminate the grocery tax, said Monday he is not through trying to make cuts.
“It’s gone from 6 cents on the dollar down to 2 cents on the dollar, and we’ll continue to attack it as we can,” the governor told reporters.
“One thing that families cannot do without is the essentials of life in the way of food,” he said. “In a time of a tough recessionary economy, every dime that they can save at the grocery store is helpful for them.”
Martin said that for shoppers saving $1 for every $100 spent may not sound like much, “but it adds up.”
“They can buy extra groceries, or put the money in their pockets and pay utility bills,” she said.
On the manufacturers’ tax cut, Beebe said the goal is to “to try to make sure that we stay competitive in the manufacturing business with some surrounding states and … states across the country to try to maintain or even create new jobs.”
“Anything that we can do to make
Some of the other laws that take effect Wednesday include:
—Act 308 of 2009, to make not wearing a seat belt a primary offense.
—Act 309, which reconfigures the embattled state Martin Luther King Jr. Commission by reducing its size from 26 to 13 members and having its chairman serve at the will of the Governor.
—Act 209, which raises the maximum fines cities and counties can charge for misdemeanor offenses from $5 to $20. The revenue is to go to jail costs.
Next Small Business Council Meeting Scheduled for July 9th
The next meeting of the State Chamber/AIA Small Business Council will be held from 11:30 a.m. to 1 p.m. on Thursday, July 9th in the Bob Lamb Conference Room.
Phyllis Holifield, president of Priddy & Holifield PA CPAs, will provide a presentation on “The Stimulus Package and How It Can Affect Small Businesses.” A legislative update will also be provided.
We are seeking a sponsor to provide lunch for the meeting.
If your company would be interested in sponsoring the lunch, contact
Small Business Council meetings are open to all State Chamber/AIA members.
If you plan to attend the meeting, please let Thatcher know no later than Wednesday noon, July 8th.
Final Leadership
Leadership Arkansas Class III held its final session
covering the Northwest Arkansas Economy on Thursday-Friday, June 25-26 in
Sponsors for the Session included Presenting Sponsors CDI Contractors, LLC and Wal-Mart Stores, Inc., and Partner Sponsors Arvest Bank, Crossland Construction Company, Inc.,
Thursday morning session speakers, who presented at Walker Hall – Walton School of Business at the University of Arkansas, included: Bob McMath, University of Arkansas Dean of Honors College; Javier Reyes, Professor of Economics, University of Arkansas; Phil Stafford, UATDF President Arkansas Research and Technology Center; Dr. Scott Osborn, BlueInGreen; Jared Hornberger, Arkansas Power Electronics International, and Susan Klooz, Wal-Mart SVP, General Counsel.
Thursday afternoon sessions included lunch in the Miller
Room of Razorback Stadium featuring Ryan Gribble, ISP Media Network; a tour
of Razorback Stadium with Patti Kimbrough and a presentation by Jeff Long,
A reception and dinner was held Thursday evening at the
Friday morning session speakers, who presented at the University of Arkansas Alumni House, included former U of A Football Coach and Athletic Director Frank Broyles; Mike Thompson; Mike Malone of the Northwest Arkansas Council; Raymond Burns of the Rogers-Lowell Area Chamber of Commerce; Perry Webb of the Springdale Chamber of Commerce; Ed Clifford of the Bentonville/Bella Vista Chamber of Commerce; Steve Clark of the Fayetteville Chamber of Commerce; Dan Sanker, President & CEO of CaseStack, Inc.; Jenis Huffman, Director of Sustainability for Tyson Foods, and Marie David, Director of Sustainability for Wal-Mart Stores.
Friday’s graduation and lunch were held at the
Leadership
The Chairman for Leadership Arkansas Class III was program
founder Paul H. Harvel. Curriculum Chairman was Michele Bond. Leadership
Arkansas Class III was sponsored by
Leadership
The Arkansas State Chamber of
Commerce is pleased to announce applications for Leadership Arkansas Class IV
are now available. You have an exciting opportunity to apply for
membership in Class IV of what is quickly becoming one of
Leadership
Class members will be chosen to participate in a
stimulating and thought-provoking educational program that consists of a
series of six day-and-a-half sessions held in locations throughout the state.
The sessions will include programming on issues critical to
Graduation from the class will not signify the end, but the beginning of a lifetime of opportunity as a member of Leadership Arkansas. For the graduates of the Leadership Arkansas program, we will convene regular meetings, regional and statewide, to facilitate continuing issues-oriented education, advanced leadership training, networking and the opportunity for members to work together toward shared goals.
Selection Criteria
The Leadership Arkansas Selection Committee is charged
with identifying those individuals most likely to utilize their leadership
abilities for the long-term benefit of
- A
commitment, motivation and interest in serving
- A
concern for
- An interest in seeking key volunteer and/or appointed state leadership roles
- Potential or existing occupational responsibilities that have significant influence on important issues facing the state
- A commitment to continued involvement in Leadership Arkansas
To apply or learn more about the Leadership Arkansas
Program click here.
Should you have any questions about the application, or about Leadership
Arkansas, please call
State Chamber Membership Development Staff Rank in Top 10 in Country
Marcus Turley and Bill Watson, membership development
representatives for the State Chamber/AIA, finished with rankings of #3 and
#9 respectively in the 2008-2009 American Chamber of Commerce
Both will be recognized at the ACCE Annual Convention in
late July in
American Recovery and Reinvestment Act Provides Energy Incentives
The American Recovery and Reinvestment Act of 2009 (ARRA) provides a number of energy tax incentives for both small and large businesses. Businesses and individuals who take advantage of these energy-saving steps this year may see bigger tax savings next year.
Here are some of the major provisions that apply:
1. Extension of Renewable Energy Production Tax Credit: This law extends the “eligibility dates” of a tax credit for business facilities that use wind, closed-loop biomass, open-loop biomass, geothermal energy, municipal solid waste, qualified hydropower and marine and hydrokinetic renewable energy. The "placed in service date” is now Dec. 31, 2012 for wind facilities and Dec. 31, 2013 for the other facilities.
2. Election of Investment Credit in Lieu of Production Credit: Businesses that operate facilities that produce electricity from wind and some other renewable resources after Dec. 31, 2008 can now choose either the energy investment tax credit or the production tax credit.
3. Repeal of Certain Limits on Business Credits for Renewable Energy Property: ARRA repeals the $4,000 limit on the 30 percent tax credit for small wind energy property and the limitation on property financed by subsidized energy financing for property placed in service after Dec. 31, 2008.
4. Coordination with Renewable Energy Grants: Business taxpayers can apply for a grant in lieu of claiming either the energy investment tax credit or the renewable energy production tax credit for property placed in service in 2009 or 2010.
5. Temporary Increase in Credit for Alternative Fuel Vehicle Refueling Property: Qualified property placed in service in 2009 and 2010 is now eligible for a 50 percent credit, and the per-business location limit increases to $50,000. Property relating to hydrogen remains at the 30 percent rate, but the per-business location limit rises to $200,000.
In addition, there are several other energy credits available that small businesses should be aware of, such as:
6. Residential Energy Property Credit: The new law increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010. The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.
7. Plug-in
8. Plug-In Electric Vehicle Credit: The new law also creates a special tax credit for two types of plug-in vehicles — certain low-speed electric vehicles and two- or three-wheeled vehicles.
More information on these business energy tax incentives is available here.
Thanks to the following companies and organizations that have recently joined the State Chamber/AIA:
Chenal
Craig Douglass Communications Inc.
Experian
Focus Laboratories
N Out Screening Services
Roto-Rooter
Royal Overhead Door Inc.
Tire Curing Bladders
Thanks to Our Pinnacle Members
Welcome to Experian, our newest Pinnacle member, which joined at the Crown Level. We would like to express thanks to all of our Pinnacle investors, the respected companies that support the State Chamber/AIA at the highest annual investment levels. We appreciate all that they do for us.
APEX
Alltel Corporation
Entergy Arkansas, Inc.
Wal-Mart Stores, Inc.
Chesapeake Energy, Inc.
Cox Communications
Tyson Foods, Inc.
XTO Energy, Inc.
PEAK
Arvest Bank
AT&T Arkansas
CenterPoint Energy Southern Gas
Electric Cooperatives of
FedEx Freight - East
Georgia-Pacific Corporation
Kraft Foods
Nucor/Nucor-Yamato
Oaklawn Jockey Club
Southern Bancorp, Inc.
Southwestern Energy Company
State Farm Insurance
Verizon Wireless
Windstream Corporation
CROWN
Acxiom Corporation
AEP Southwestern Electric Power
Albemarle Corporation
American Greetings Corporation
Arkansas Oklahoma Gas Corporation
Bank of the Ozarks
BP America, Inc.
CardinalHealth
CenterPoint Energy Gas Transmission Company
Crossland Construction
Deltic Timber Corporation
Dynegy
Entegra Power Group LLC
Evergreen Packaging Company
Experian
Farm Bureau Mutual Insurance Company of Arkansas, Inc.
Forest Oil Corporation
Glad Manufacturing/A Clorox Company
Golden Living
International Paper Company
Kimberly-Clark Corporation
Lion Oil Company
McKee Foods Corporation
Metropolitan National Bank
Nabholz Construction Corporation
OG+E
Petrohawk
Philander
RebeccaRice & Associates
Rheem Air Conditioning Division
Riceland Foods, Inc.
Russellville Steel Co. Inc.
Signature Bank of
Stephens, Inc.
Storm Cat Energy
The Clorox Company
The Trane Company
US Bank
Waste Management
Weyerhaeuser Company
Wright Lindsey & Jennings
Calendar of Events
July 9 Small Business Council Meeting
11:30 a.m. – 1 p.m.
State Chamber Conference Room
August 12 State Chamber/AIA Board Meeting
10 a.m.
State Chamber Conference Room
August 12 New Member Luncheon
11:30 a.m. to 1 p.m.
State Chamber Conference Room
September 3 Small Business Council Meeting
11:30 a.m. – 1 p.m.
State Chamber Conference Room
October 19 State Chamber/AIA Annual Meeting
State Chamber/AIA Board Meeting
DoubleTree Hotel
November 5 Small Business Council Meeting
11:30 a.m. – 1 p.m.
State Chamber Conference Room
