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Delegate proposes implementing DLS recommendations to repeal ineffective tax credits
Summary
Delegate Julie Palakovich Carr presented HB919 to sunset and repeal a set of tax credits that the Department of Legislative Services has repeatedly deemed ineffective or duplicative; sponsor estimated at least $82 million in savings from a group of provisions.
Delegate Julie Palakovich Carr told the Ways and Means Committee on March 4 that House Bill 919 would implement a set of Department of Legislative Services (DLS) recommendations to sunset or repeal several state tax credits and exemptions that DLS has found ineffective or duplicative.
The sponsor said DLS produces periodic, nonpartisan evaluations of tax credits and that the legislature has often made incremental changes rather than adopting the full DLS recommendations. Palakovich Carr argued the current budget deficit makes this an opportune moment to eliminate “zombie” tax credits. She said the bill’s provisions would save at least $82 million over multiple years based on available fiscal scoring, noting some provisions lacked recent fiscal scores and the actual total could be higher.
The hearing did not include oppositional witnesses on the record. The sponsor urged the committee to consider DLS evaluations and act to reduce tax expenditures as part of the state’s broader budget work.
