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2012 SESSION

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HB 1170 Income tax, state and corporate; credit for service renewable energy property.

Introduced by: Kaye Kory | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Income tax credits.  Grants an income tax credit for taxable years beginning on or after January 1, 2012, to individuals for placing into service renewable energy property. Individuals placing into service solar panels would be allowed a tax credit as follows: $1.25 per watt for the first 2,000 watts; $0.75 per watt for 2,001 through 8,000 watts; and $0.25 per watt for 8,001 through 20,000 watts, not to exceed $10,000 per system. The bill would allow up to $2,000 in tax credit for placing into service a solar hot water system and 10 percent of the installed cost of placing into service a geothermal heat pump, not to exceed $3,000. Individuals would also be allowed tax credit equal to 50 percent of the cost of a residential energy audit performed on their primary residence, not to exceed $250, provided the individual implemented all energy efficiency improvements recommended in the auditor's report. Tax credits for individuals under the bill would be capped at $3 million each fiscal year.

The bill also grants an income tax credit for taxable years beginning on or after January 1, 2012, to corporations for placing into service renewable energy property. Corporations placing into service solar panels would be allowed a tax credit as follows: $1.25 per watt for the first 2,000 watts; $0.75 per watt for 2,001 through 8,000 watts; and $0.25 per watt for 8,001 through 20,000 watts, not to exceed $2.5 million per system. The bill would allow a tax credit equal to 25 percent of the installed cost of placing into service a solar hot water system, not to exceed $10,000, and 10 percent of the installed cost of placing into service a geothermal heat pump, not to exceed $10,000. Corporations would also be allowed tax credit equal to 50 percent of the cost of a commercial property energy audit, not to exceed $500, provided the corporation implemented all energy efficiency improvements recommended in the auditor's report. Tax credits for corporations under the bill would be capped at $5 million each fiscal year.

Beginning January 1, 2012, the bill reduces from 85 percent to 75 percent the redemption percentage for unused coalfield employment enhancement tax credits that would be paid to taxpayers who earned the credit. The 10 percent difference would not be paid and would accrue to the benefit of the general fund of the state treasury to help offset any fiscal impact from the individual and corporate renewable energy property and energy audit income tax credits established under the bill.


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