17 April 2017

Committee action, Apr. 17: SB 18, SB 25, SB 33

SB 18 by Sen. Barrow Peacock would eliminate the alternative fuel conversion credit for vehicles. He told the Senate Revenue Committee that the money given away, 36 percent currently but due to go to 50 percent next year, the most generous in the country, would cost nearly $17 million over five years. He pointed out that even if it provided an incentive for cleaner air, this was quite costly to the state and that many conversions would occur anyway. In response to questions, he noted that in tight budgetary times the costs of this exceeded benefits.

A few senators insisted that the costs were worth it, and Sen. Eddie Lambert said he would like to retain some form of this, if perhaps at a lower level. After a promise to bring up the bill again soon in order to confer with other senators on the item, Peacock somewhat hesitantly agreed to defer.

SB 25 by Sen. JP Morrell would sunset the individual income education tax credit. It gives $25 per child for every family. Morrell claimed it had a low return and that others could take up the slack and that he would “reinvest” the funds into child readiness tax credits and the Taylor Opportunity Program for Students.

Without debate and objection, the bill was moved favorably.

SB 33 by Morrell would continue the deduction for taxes paid to others states that was lowered temporarily last year. He said the state needed the money, and claimed the state was looking to the Senate to save its fiscally. At $31 million, he contended this was not much money and alleged that no one was complaining about bills like these.

Without debate and objection, the bill was reported favorably.

No comments: