Allows real property owner a one-time non-refundable tax credit for the actual costs of connecting a single family or multi-family dwelling to a municipal sewer system credited to the owner's personal or corporate income tax.
Impact
The introduction of this tax credit is designed to incentivize property owners to secure proper sewer connections, thereby promoting public health and environmental standards within municipalities. By facilitating easier connections to municipal sewer systems, the bill supports infrastructure improvements and urban planning efforts. It is expected to lead to enhanced sanitation services and potentially reduce the instances of improper waste disposal, positively affecting local ecosystems and communities.
Summary
Bill S2159, introduced in January 2024, proposes a non-refundable income tax credit aimed at reducing the financial burden on property owners for connecting their homes to municipal sewer systems. This credit is applicable to both single-family and multi-family dwellings. It allows property owners to claim a one-time credit equivalent to the actual costs incurred for installation, which can be applied toward either personal or corporate income tax, depending on the owner's filing status at the end of the tax period.
Contention
While the bill's objectives are widely recognized, there may be concerns regarding the fiscal implications for the state treasury, as the implementation of tax credits could lead to reduced income tax revenues. There may also be debates regarding the coverage of costs and the adequacy of the credit offered relative to the actual expenses incurred by property owners. Stakeholders, including local governments and homeowners, might discuss how this bill aligns with broader economic and environmental policies, specifically addressing the need for urban infrastructure improvements.