HB849:

Income tax, state; establishes geothermal tax credit.

Bill Summary:

Income tax; geothermal tax credit. Establishes an
individual income tax credit for taxable years 2023 through 2027 for qualified
expenditures related to a geothermal system placed in service at a residence in
a tobacco region locality. The bill provides that the
geothermal tax credit amount is the lesser of $7,500 or 25 percent of
qualified expenditures.  The aggregate annual limit on
such credits is $1 million. The bill directs
the Department of Energy to evaluate whether a person's geothermal system
complies with statutory and regulatory standards and to issue a certification
for a compliant system to be attached to a person's
income tax return in order to claim the geothermal tax
credit.

The bill reduces from 50 percent to 25
percent the portion of Master Settlement
Agreement funds that accrue to the Tobacco Indemnification and Community
Revitalization Fund and allocates 25 percent of such funds to cover the revenue
loss attributable to the credit created by the bill. The bill has a delayed
effective date of January 1, 2023.