The bill's impact involves enhancing existing statutory provisions related to the environmental remediation tax credit. By extending the eligibility timeline and modifying certain expenditure limits, the bill aims to facilitate further investment in cleaning up contaminated properties. This change is significant as it directly influences both tax policy and environmental safety measures in the state, ensuring that proper resources are allocated for remediation projects that can significantly benefit the local economies, particularly in rural areas.
Summary
House Bill 1116 aims to extend the state income tax credit for taxpayers and qualified entities engaged in the environmental remediation of contaminated land. This extension allows for a credit against income taxes for expenses incurred in such remediation efforts starting from January 1, 2014, up to January 1, 2030. The bill outlines specific limitations based on the amount of expenditures, granting a higher percentage of transferable expense amounts for projects located in rural communities. The intent behind this bill is to incentivize cleanup activities and promote responsible management of contaminated sites across Colorado.
Sentiment
The sentiment surrounding HB 1116 appears generally supportive, particularly among environmental advocates and those involved in remediation projects. Stakeholders view the bill as a positive step towards addressing environmental issues while simultaneously stimulating economic activity in affected areas. However, there might also be some skepticism regarding the enforcement of the proposed measures and whether they effectively encourage actual remediation rather than merely providing tax benefits.
Contention
Notable points of contention include concerns over the potential long-term effectiveness of tax credits as a sole incentive for environmental remediation. Critics might argue that without a solid framework for oversight and accountability, these credits could lead to minimal actual remediation on the ground. Moreover, there might be discussions around the equitable distribution of benefits, particularly in how rural communities are prioritized compared to more urbanized areas that also face contamination issues.
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)