Income taxes: exclusion: turf removal water conservation program.
Impact
The extension of the exclusion is expected to positively impact taxpayers participating in turf removal projects by allowing them to exclude financial incentives from their taxable income. This amendment could enhance the funding appeal for conservation projects aimed at reducing water consumption in California, aligning with the state's broader goals of water conservation and sustainable resource management. By incentivizing individuals and businesses to participate, the bill supports local water agencies' efforts to promote water-saving initiatives.
Summary
Assembly Bill No. 2283, introduced by Assembly Member Holden, aims to amend certain sections of the Revenue and Taxation Code relating to taxation. Specifically, the bill extends the exclusion from gross income for amounts received as rebates or financial incentives from local water agencies for participation in turf removal water conservation programs. Originally set to expire at the end of 2018, this bill proposes to extend the operational period of these provisions to January 1, 2024, thus allowing continued tax benefits for participants in these programs.
Contention
There may be points of contention surrounding this bill, particularly regarding fiscal impacts on state tax revenues due to the tax exemption. Opponents could argue that extending such incentives creates a burden on the state treasury, potentially limiting funds available for other essential services. Proponents, however, would counter that the long-term benefits of water conservation and the resulting reduction in environmental strain justify the short-term costs associated with these tax exclusions.