Provides tax credits for manufacturers to reduce the use of water from acquifers and other potable water sources. (gov sig) (OR DECREASE GF RV See Note)
Impact
The bill specifically applies to manufacturing entities that utilize any form of water in their processes, defining eligible companies under North American Industrial Classification System codes 31, 32, and 33. The tax credit is capped at $10 million per manufacturing facility and will be available for equipment purchased on or after January 1, 2020. By establishing a five-year carry-over provision for any unused credits, SB 230 encourages manufacturers to invest in water-saving technologies without immediate fiscal pressure.
Summary
Senate Bill 230, introduced by Senator Claitor, proposes a tax credit to incentivize manufacturers to reduce their reliance on freshwater aquifers by utilizing equipment designed to decrease potable water usage or purify nonpotable water. This bill aims to ease the pressure on the state's valuable freshwater resources while simultaneously supporting the manufacturing sector to adopt sustainable practices. The financial credits will allow manufacturers to offset their income or corporation franchise taxes for the year when the eligible equipment is installed, ensuring that they can reduce operational costs while making environmentally responsible choices.
Sentiment
Discussions surrounding SB 230 have generally reflected a supportive sentiment from the business community, which sees this initiative as a pathway to lower operating costs and bolster environmental stewardship. However, there are potential concerns regarding how effectively the credits will be implemented and whether they will substantially impact water conservation efforts. The balance between fostering economic growth in manufacturing while protecting critical water resources presents an important narrative in the bill's progression.
Contention
While SB 230 garners support for encouraging water conservation in the manufacturing sector, there are notable points of contention regarding the scope and accountability of the tax credit system. Critics may argue that simply providing tax credits does not guarantee effective usage of water-saving technologies and that there must be robust oversight and clear metrics to evaluate the environmental benefits gained from these credits. Legislative discussions might also include the challenge of ensuring that such incentives are accessible to smaller manufacturers rather than disproportionately benefiting larger corporations.
Provides a flat corporation income tax rate and eliminates the usage of certain tax credits against corporation income tax. (gov sig) (OR -$144,000,000 GF RV See Note)
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)
Repeals state taxes levied on the taxable income of individuals and corporations and repeals tax credits, exemptions, deductions, and exclusions (OR DECREASE GF RV See Note)
Relative to tenant and contract manufacturers of beer, wine, and liquor; allowing pharmacists to administer influenza, COVID-19, and other FDA licensed vaccines without explicit approval from the general court; and, restricting the purchase of real property on or around military installations.