From 2000 through 2010, there was a state income tax credit for taxpayers who conducted certain environmental remediation activities on property that was proposed for redevelopment. The bill reauthorizes the credit for a 9-year period commencing in 2014 as follows:
- The property can be located anywhere in the state;
- The remediation need not be for property that will be redeveloped;
- A formula for calculating the amount of the credit is specified; and
- The credit may be transferred by a taxpayer to a transferee who may then claim the credit.
The taxpayer seeking the credit must obtain a certificate from the department of public health and environment certifying the accuracy of the costs of the clean up and that a clean up plan has been fully implemented. The credit can be carried forward for up to 5 years.
Local governments and private nonprofit entities do not pay income taxes in the state but do incur expenses in conducting environmental remediation activities. Subject to the same terms and in the same amounts as the re-authorized credit allowed to taxpayers, the bill allows certain local governments and private nonprofit entities to transfer a portion of these expenses to transferees who may then claim the amounts as an income tax credit.