By Stu Johnson
Frankfort, KY – The Senate budget committee has adopted a state revenue plan which includes four new corporate tax credits. However, it remains to be seen how they might fare in the house.
The full senate is not expected to vote on the spending plan or the money to pay for it until Friday. Senate budget committee chair, Bob Leeper admits, if enacted, the tax breaks could eventually hurt the state's bottom line.
"In some areas you're incentivising some industry to locate here versus somewhere else we're in an effort here to try and create jobs and that's what part of that effort was all about," said Leeper.
The negative impact is hard to estimate because, he says, it depends on the number of jobs the incentives create.
"If you assume you're effecting the bottom line in today's market but you're creating jobs you don't know what the positive impact is gonna' be so I guess you could throw out any number you want to if you chose to do that but the intent is what's important the intent is to try to create an atmosphere that will try to create some jobs,"said Leeper.
One of the tax breaks in the senate bill would go to Toyota. It could amount to just over one million dollars over the next two years. Scott County Senate Damon Thayer says the Georgetown automaker is responsible for 19 thousand jobs with workers in 78 counties.
Thayer told WEKU's Stu Johnson, he doesn't believe these additions will result in this special session spilling over into next week.
"No there is still plenty of time and hopefully the house will agree with these amendments, but there is a sticking point, I don't think any of these are deal breakers," said Thayer.
Under the plan, Thayer says, Toyota would be eligible for a one point one million dollar tax break over the next two years. He says it would help the Georgetown automaker offset the cost for bringing the hybrid Camry operation to Scott County.