JLARC presents 2024 tax-preference reviews; auditors ask Legislature to re-evaluate several credits

Pete Van Moorsil, staff to the Joint Legislative Audit and Review Committee, told the House Finance Committee on Jan. 14 that JLARC issued six reports in 2024 covering 29 tax preferences and made recommendations for legislative action.

The reports range from eight incentives meant to increase alternative-fuel vehicle adoption to a public-utility tax credit that helps utilities provide home energy assistance to low-income customers. "The legislative auditor recommends that the legislature determine whether to continue these 8 tax preferences," Van Moorsil said about the alternative-fuel vehicle package.

Why it matters: JLARC's reviews evaluate whether preferences meet stated objectives, who benefits, revenue impacts and equity implications. The committee's findings inform bills that the House Finance Committee may consider this session and may influence budget planning.

What JLARC reported

- Alternative-fuel vehicle preferences: JLARC estimated the eight preferences for vehicles and infrastructure reduce state revenue by about $98 million in the current biennium and that alternative-fuel vehicle registrations rose about 230% since the preferences began. DOR records show just over 40,000 vehicles claimed the sales-and-use tax exemption during the review period. The review found adoption…