Louisiana Senate Bill SB245

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11

Caption

Provides a tax credit against individual state income tax for the amount of sales tax paid by homeowners when purchasing green materials for residential home building or remodeling. (8/15/11) (OR DECREASE GF RV See Note)

Impact

The implementation of SB245 is expected to bolster environmentally responsible practices in home building and remodeling within the state. By providing a financial incentive, the bill aims to reduce the financial burden on homeowners who wish to use green materials, thus potentially leading to increased adoption of sustainable building practices. Moreover, as the bill specifically mandates that these materials be purchased from Louisiana suppliers, it is poised to directly benefit local businesses and suppliers in the green materials sector, further aiding economic development.

Summary

Senate Bill 245 establishes a tax credit for Louisiana homeowners who purchase green materials and supplies for residential construction, remodeling, or rebuilding. The proposed law allows homeowners to receive a credit against their individual state income tax equivalent to the amount of sales tax paid on these eco-friendly materials sourced from Louisiana suppliers. This initiative aims to promote sustainable building practices while also stimulating the local economy by encouraging residents to invest in green materials.

Sentiment

The sentiment surrounding SB245 appears to be largely positive among environmental advocates and local businesses that stand to benefit from enhanced demand for green materials. Supporters believe that the bill will effectively encourage homeowners to make eco-conscious choices, contributing to overall environmental sustainability in the state. However, there may be concerns regarding the bill's administration and the criteria for what constitutes 'green materials,' potentially leading to discussions around regulation and enforcement of the tax credit provisions.

Contention

While most of the discussions on SB245 have been favorable, some contention may arise regarding the definition of 'green materials' and the potential for abuse of the tax credit system. Critics may raise questions about the clarity of guidelines for what qualifies as acceptable materials, or they may fear that the tax incentive could be exploited if not properly regulated. Additionally, debates may center on the long-term fiscal implications of providing such tax credits in relation to state revenue.