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Committee adopts transferability for water‑related tax credits, effective 2020
Summary
Senate Bill 6‑29 was amended and approved to limit changes to making certain water‑related tax credits transferable and to move implementation to 2020 to allow rules and regulations. The committee heard estimates of about $587,000–$600,000 per year as the fiscal impact of transferability.
The Senate Revenue & Tax Committee on Thursday amended and approved Senate Bill 6‑29 to allow transferability of certain water‑related tax credits and to delay implementation to 2020 to permit rulemaking.
Under the amended text, provisions that would have increased credit amounts or extended the period for use were removed and the bill was narrowed to the transferability feature only. The sponsor said making credits transferable will let farmers and landowners who do the required work but lack taxable income market those credits to other taxpayers; he specifically cited implementation needs in agricultural and Delta regions and said transferability will ‘‘make them more marketable’’ and create an incentive to complete projects required by the state water plan.
Committee discussion focused on implementation timing and fiscal effects. The sponsor said moving the effective date to 2020 would allow time to put ‘‘the right rules and regs in place’’ and avoid implementation problems. Committee fiscal discussion included an earlier sponsor estimate that roughly $600,000 in credits might otherwise go unused; DFA fiscal analysis provided to the committee estimated a 10‑year average of approximately $587,000 per year for transferability of the credits.
The committee adopted the amendment to limit the bill to transferability and later passed SB 6‑29 as amended by voice vote.
