Relates to providing a tax credit for the purchase of an electrical generator

Title of bill

An act to amend the tax law, in relation to providing a tax credit to businesses for the purchase of electrical generators

Purpose

This bill would provide a tax credit for businesses and individuals who purchase an electric generator.

Summary of specific provisions

This bill would amend the tax law to provide taxpayers with the allowance for a credit when they have purchased an electric generator. The amount of credit will be equal to the amount expended in the previous tax year for the purchase of one or more electrical generators; however, if the amount of credit allowed for any taxable year reduces the tax to such amount that is less than the higher of the amounts prescribed in paragraphs (c) and (d) of subdivision one of this section then this amount shall be treated as an overpayment of tax to be credited or refunded.

This bill would also establish the legal basis of the tax credit for the purchase of electrical generators.

This bill would further allow for the taxpayer credit, which is equal to the amount expended in the previous tax year for the purchase of one or more electrical generators. Also, this bill would outline the application of such taxpayer credit; where if the amount of credit allowed for any taxable year exceeds the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded.

Justification

Natural disasters often result in the critical failure of electrical utility systems.

To help mitigate the effects of a power outage individuals and business utilize electric generators.

For example, in the wake of Hurricane Wilma, the electric grid was down for much of the affected area; and, as a result, gas stations were not able to pump gasoline until the infrastructure of the electrical system was restored. It is the prerogative of this state to provide incentives for individuals and business to take certain actions that help prepare and mitigate the effects of a natural or man-made disaster.

This tax credit will encourage businesses and residents of this state to purchase electric generators which will help lessen the impact of a power outage or a total failure of the electrical utilities in this state.

Prior legislative history

2008 - S3799 - Referred to Investigations and Government Operations.

Fiscal implications

This bill would result in increased revenue for the state since the credit awarded for purchase of a generator would be far offset by the increase in productivity that would result from their use.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law.