Revenue-neutral assessment on environmental emissions provided, refundable FICA and property tax credits provided, credits against income taxes required to be paid as dividends, energy efficiency and renewable energy project loans authorized, and money appropriated.
Impact
One of the core components of HF4953 is the establishment of a carbon assessment dividend account, which will manage the revenues generated from these emissions assessments. The funds collected will be allocated to various tax benefits, including refundable tax credits for individuals and businesses that contribute to renewable energy projects or enhance energy efficiency. Additionally, the bill authorizes an energy revolving loan program to support businesses in obtaining financing for energy improvement projects, making clean energy more accessible and affordable.
Summary
House File 4953, known as the Carbon Assessment and Dividend Act, is designed to implement a revenue-neutral assessment on environmental emissions associated with the use of primary carbon-based fuels. This legislation aims to incentivize reductions in carbon emissions by assessing a fee on fuels that emit carbon dioxide when burned for energy. The bill outlines specific assessments starting at $50 per ton of carbon dioxide emitted, with gradual increases of $5 per ton each year until a $200 cap is reached. This gradual escalation is intended to encourage industries to transition toward cleaner energy sources over time.
Contention
While proponents of HF4953 argue that it will address climate change efficiently and generate economic benefits through the promotion of clean energy technologies, there are areas of contention. Critics of the bill express concerns about the potential financial impacts on businesses and consumers if the cost of the emissions assessments is passed down, voicing skepticism about the effectiveness of tax rebates and dividends in mitigating these effects. Additionally, some stakeholders worry that the phased-in approach may not be adequate to steer the state towards significant reductions in emissions before environmental thresholds are crossed.
Individual income tax provisions modified; refundable credit for investments in energy efficient home improvements, electric vehicles, and renewable energy provided; and money appropriated.
Individual income and corporate franchise taxes, sales and use taxes, property taxes and local government aids, and other miscellaneous taxes and tax-related provisions policy and technical changes made.
Individual income taxes, corporate franchise taxes, sales and use taxes, and other various taxes and tax-related provisions modified; various policy and technical changes made; income tax credits and subtractions modified; and enforcement, return, and audit provisions modified.