Pulaski County commission panel recommends tighter scoring for some tax abatements after state law change

Pulaski County’s Economic Development Commission recommended that the county commissioners adopt a revised scoring system for tax abatements on business personal property following recent state changes to depreciation rules.

Staff explained that Senate Act 1 of 2025 removed a 30% depreciation floor for much business personal property, which can make traditional abatements overly generous in later years; a subsequent cleanup bill reinstated the 30% floor for certain energy-generation projects such as solar. "If it is personal property that is not governed by [the statute]," the staff member said, "instead of 7-point stair steps in the abatement scoring scale it increases to a 10 and a half point scale," and the maximum deduction would scale down so typical projects would receive a shorter, six-year maximum abatement instead of a 10-year phase.

Commission members discussed the trade-offs between encouraging investment and preserving county property-tax revenue. Members said large capital projects that create many well-paying local jobs may still warrant generous abatements, while smaller capital expenditures should not eliminate the county’s taxed value. Staff clarified that the change would apply to projects going forward and would not retroactively alter abatements already granted.

The commission voted to recommend the proposed scoring changes to the county commissioners; the presenter said staff will forward the recommendation to the commissioners for final action.