Provides relative to the construction code retrofitting deduction for individual income tax. (gov sig) (EN DECREASE GF RV See Note)
Impact
By enabling this additional tax benefit, SB183 potentially boosts economic activity in the construction sector, as more property owners may undertake retrofitting projects, contributing to overall job growth. The bill's provisions apply to taxable years beginning on or after January 1, 2023, ensuring immediate operational impacts. Allowing grants alongside tax deductions further incentivizes property owners to invest in necessary upgrades while reducing the financial burden of compliance with building codes.
Summary
Senate Bill 183 amends R.S. 47:293(2)(f) to enhance the construction code retrofitting deduction available to taxpayers in Louisiana. The bill allows taxpayers who claim this deduction to also receive certain grants, promoting incentives for retrofitting properties to meet updated construction standards. The legislation is aimed at encouraging property improvements that may enhance safety and compliance with modern building codes, reflecting an acknowledgment of the importance of resilient infrastructure.
Sentiment
The sentiment around SB183 appears largely positive, as it aims to provide financial relief and encouragement for taxpayers to upgrade and retrofit properties. Legislative support was evident, with a unanimous vote of 103 yeas and no nays recorded during the final passage, suggesting broad bipartisan backing for the bill. Supporters likely view it as a proactive measure to enhance the safety and quality of buildings across Louisiana.
Contention
While the bill enjoys strong support, there may still be discussions regarding the potential impact of such deductions on state revenues. Critics might argue that any tax benefits for retrofitting could lead to reduced state funding for other essential services, emphasizing the need for a balanced approach to tax policy. However, the prevailing view seems to focus on the benefits derived from improved building standards and infrastructure investment.
Increases the maximum amount of the construction code retrofitting deduction and expands the deduction to cover costs associated with "fortified home" standards compliance (EN DECREASE GF RV See Note)
Provides for a flat rate for purposes of calculating income tax for individuals, estates, and trusts, increases the standard deduction, and modifies or repeals certain income tax deductions and credits (Item #5 and 6) (RE1 DECREASE GF RV See Note)