Clarifies the carryforward period for the inventory tax credit. (gov sig) (OR DECREASE GF RV See Note)
Impact
The proposed changes in SB 242 are expected to provide greater flexibility for businesses regarding their tax credits. By allowing unutilized credits to be carried forward for a longer period, businesses can better manage their tax positions and potentially reduce their overall tax burden. This period extension specifically targets small businesses that may face challenges in utilizing their tax credits due to fluctuating revenues or external market factors.
Summary
Senate Bill 242 aims to clarify the carryforward period for the inventory tax credit, specifically amending a prior law established in the 2020 Second Extraordinary Session. The bill proposes to extend the carryforward period for the tax credit for ad valorem taxes paid on inventory from five years to a maximum of ten years. This extension is particularly beneficial for manufacturers and retailers who may find themselves with unused tax credits as they navigate the complexities of tax liabilities.
Sentiment
The sentiment surrounding SB 242 appears to be generally positive among proponents, particularly from the business community. Supporters believe that the extended carryforward period will alleviate financial pressures on manufacturers and small retailers, enabling them to invest further into their operations. However, there may be some contention regarding the fiscal implications for state revenue, as longer carryforward periods could delay tax income for the state budget.
Contention
Debate around the bill could centralize on concerns regarding the potential impact on state revenue collections. Some may argue that while the benefits to businesses are clear, the extension of the carryforward period may complicate budgeting processes and delay necessary tax revenues for the state. Additionally, discussions on equitable tax policy may arise, focusing on how tax benefits are distributed among various sectors and the long-term implications for public funding.
Provides for the reduction of the amount of certain ad valorem tax credits and provides for the carryforward rather than the refund of a certain portion of excess credit amounts. (gov sig) (EG +$253,000,000 GF RV See Note)
Provides for the reduction of the amount of certain ad valorem tax credits and for carryforward rather than the refund of certain portion of excess credit amount. (gov sig) (OR +$294,000,000 GF RV See Note)
Provides for the refundable portion of the inventory tax credit for certain manufacturers impacted by the 2020 emergencies and disasters. (gov sig) (Item #26) (EN DECREASE GF RV See Note)
Provides for the carry forward rather than the refund of a certain portion of the tax credit for ad valorem taxes paid on inventory. (gov sig) (Item #47) (EN +$17,300,000 GF RV See Note)
Provides for the tax credit for ad valorem taxes paid on inventory by taxpayers included in one consolidated federal income tax return. (gov sig) (EN DECREASE GF RV See Note)
Provides for the carryforward rather than the refund of a certain portion of the tax credit for ad valorem taxes paid on inventory (EG +$13,000,000 GF RV See Note)