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Senate committee hears SB 575 to create tax credits for private tire-remediation donations; no vote taken
Summary
Sen. Larry Teague introduced SB 575 to authorize private donations and tax credits for environmental cleanup of tire piles. DFA testified the bill would cap credits at $2 million per year and run as a pilot through Dec. 31, 2023; the committee took no vote because of the revenue impact.
Senator Larry Teague introduced Senate Bill 575 to the Senate Revenue and Tax Committee, saying the measure would create tax credits to encourage private funding for environmental remediation projects focused on tire removal. "So this bill sets up some private funding for the remedial, activities, I think specifically tire tires," Teague said when he identified himself for the record as "Larry Teague from Nashville, Dodge County."
Paul Gearing of the Department of Finance and Administration testified that the bill would establish tax credits tied to environmental remediation donations and that the program would be capped. "There is a cap within the bill, that up to, $2,000,000 per year can be generated in tax credits," Gearing said, adding that SB 575 is a pilot program and "it is a pilot program that expires on... December 31 of 2023." He said the state could see a revenue impact "up to $2,000,000 per year" if the credits are claimed.
Committee members pressed DFA on how the cap would operate if donors or credits exceeded the annual limit. Senator Ingram asked what would happen if the cap were exceeded; Gearing said the statute provides for a pro rata reduction so that only $2,000,000 could be redeemed in a given year and that DFA would be responsible for prorating the credits among claimants. Senator Johnson asked whether that proration would occur only after returns for the fiscal year had been filed; Gearing confirmed proration would be applied after all returns claiming the credits for that fiscal year were filed.
Teague acknowledged the posted revenue estimate and told the committee he did not expect the full $2 million to be realized in the next year. The chair noted that because the bill carries a revenue impact, the committee would not take a vote at the session and adjourned.
The committee did not vote on SB 575; there was no motion or recorded tally during the meeting. The bill remains under consideration pending further committee action or scheduling for a future meeting.
