Mobile machinery and equipment; tax credit for purchase.
The implementation of SB1433 is expected to have positive implications for state laws regarding environmental and fiscal policy. By introducing this tax credit, Virginia aims to enhance the recycling efforts within the road construction sector, promoting a more environmentally friendly approach to roadway maintenance. This bill not only supports contractors financially but also aligns with broader state goals of reducing waste and promoting sustainability in construction practices.
Senate Bill 1433 proposes a tax credit for the purchase of mobile machinery and equipment utilized by road contractors for the recycling of asphalt materials on pavements and roadways. The bill aims to encourage the reclamation, recycling, and reprocessing of existing asphalt by providing a financial incentive for taxpayers engaged in these activities. The tax credit amounts to 20% of the purchase price of the approved machinery and equipment, and it specifically targets contractors dealing with asphalt recycling, which is increasingly important for sustainable development in infrastructure projects.
While the bill seeks to promote recycling efforts, it may also spark debates over its fiscal implications for the state's budget. The limitation on the total credits awarded to $3 million per fiscal year could lead to concerns regarding the adequacy of funding for the credits relative to the needs of the construction and recycling industries. Moreover, stakeholders might question whether the certification process established by the Department of Environmental Quality is sufficiently rigorous to ensure that only effective and necessary equipment qualifies for the tax credit.