Terminates certain tax credits as of January 1, 2019. (gov sig) (EN +$27,000,000 GF RV See Note)
Impact
The implications of SB 172 are significant as it directly targets tax credits that have provided financial relief to businesses and educational organizations. By discontinuing these incentives, the bill aims to streamline state revenue and reduce budgetary strains. However, this action could lead to challenges for educational institutions and businesses that rely on these credits for funding and operational flexibility, potentially impacting their growth and employee retention rates.
Summary
Senate Bill 172 focuses on the termination of various tax credits as of January 1, 2020, affecting multiple sectors including corporations and educational institutions. The bill signifies a strategic move towards managing state finances by eliminating tax incentives that are not deemed sustainable or effective in the long term. According to the bill, several existing tax credits will be repealed to better address fiscal responsibilities during a critical period for state funding.
Sentiment
The sentiment around SB 172 appears mixed, with proponents emphasizing the necessity of fiscal discipline and the importance of consolidating tax regulations. Detractors, however, believe that the elimination of these tax credits could hamper economic growth and discourage investment in sectors crucial for community development. This divergence in perspective underlines a broader debate about the role of government in incentivizing or penalizing business operations.
Contention
Notable points of contention include discussions surrounding the effectiveness of previously implemented tax credits and the argument that their termination could disproportionately affect emerging sectors aiming for growth. Critics argue that while reducing tax expenditures may stabilize budgets, it could also result in fewer opportunities for job creation and educational advancements. The tension between fostering an environment conducive to business and maintaining fiscal prudence remains a focal point of debate regarding this legislation.
Reduces the amount of certain tax credits beginning January 1, 2014, for income tax credits and January 1, 2015, for corporate franchise credits (RE INCREASE GF RV See Note)
Limits annual expenditures on certain tax credit and rebate programs and terminates the programs in 2025. (Item #21) (gov sig) (EG +$588,000 GF EX See Note)
Removes the June 30, 2018, sunset provision and makes permanent reductions to certain income and corporation franchise tax credits. (gov sig) (EN +$12,500,000 GF RV See Note)
Establishes termination dates for certain tax credits and incentive programs administered by the Department of Economic Development. (gov sig) (EN INCREASE GF RV See Note)
Creates new $100 assessment for convictions of certain sexual offenses to fund counseling for victims and their families; establishes Sexual Offender Victim Counseling Fund.