Provides individual income tax credits for the purchase and installation of residential water saving equipment. (gov sig) (EG -$2,000,000 GF RV See Note)
The proposed legislation is expected to impact state tax law by providing tax credits that are directly tied to the installation of specific types of water saving devices. These credits are intended to not only ease the financial burden on households making such environmentally friendly purchases but also to foster a culture of sustainability among residents. The bill includes a provision for doubling credits if the equipment is installed in areas of groundwater concern, which reflects a targeted approach to address local environmental challenges.
Senate Bill 228 aims to incentivize the purchase and installation of water saving equipment in residential settings through the implementation of individual income tax credits. Effective from January 1, 2020, residents in Louisiana can receive credits for high efficiency toilets, washing machines, weather-based irrigation controllers, and storm water runoff collection systems, with specific dollar limits per item. The bill is seen as a proactive measure to promote environmental conservation and efficient water usage in the face of increasing concerns regarding water scarcity and its management.
The general sentiment around SB 228 appears to be positive among various stakeholders, particularly among environmental advocacy groups who support measures aimed at improving water efficiency. Supporters argue that the bill facilitates beneficial practices that align with broader goals of water conservation and ecological responsibility. However, concerns exist regarding the fiscal implications of issuing millions in tax credits, as there is a cap of $2 million on the total credits that can be issued annually, which may limit the bill's overall effectiveness in reaching a larger audience.
Notable points of contention include worries about the bill’s financial sustainability and its cap on tax credits, which might restrict the number of eligible taxpayers benefiting from these incentives. Additional concerns pertain to the potential sunset provision of the bill, which may limit its long-term impact if it does not receive further legislative support. The debate has raised questions about the balance between encouraging environmental sustainability and ensuring that fiscal policies are sustainable and fair to all taxpayers.