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Lawmakers seeks new way for big firms to use tax credits

PHOENIX (AP) — An Arizona lawmaker is proposing a new way for big manufacturing companies like chip-maker Intel to use millions of dollars of tax credits they can't cash in because previous breaks already have them owing no state income tax. The proposal from Rep. Jeff Weninger allows...

PHOENIX (AP) — An Arizona lawmaker is proposing a new way for big manufacturing companies like chip-maker Intel to use millions of dollars of tax credits they can't cash in because previous breaks already have them owing no state income tax.

The proposal from Rep. Jeff Weninger allows manufacturing companies to get cash refunds or sales tax offsets when they build new facilities. The Chandler Republican says it's needed to boost the state's competitiveness.

House Bill 2492 contains three other major incentives for manufacturers like Intel, Raytheon, Honeywell and Boeing. One returns half the income tax withholding from new workers, another creates a new sales tax exemption for some manufacturing supplies, and a third lowers property taxes on new equipment in special trade zones.

It is set for a Wednesday hearing.