Creating an electric outdoor power equipment tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions

Any credit in excess of the taxpayer’s liability for the tax year is not refundable but may be credited to the tax liability for the following tax year. The bill requires the department of revenue to accept and approve applications on a first-come, first-served basis until the maximum amount of tax credits allowed during the tax year are claimed. The bill establishes the maximum amount of tax credits that may be claimed during the tax year at $5 million. If, for a tax year, the aggregate amount of tax credits applied for exceeds the maximum amount of tax credit available, the department shall establish a wait list for tax credits. The bill provides that $2 million of the maximum amount of tax credits available shall be reserved for individual income taxpayers. If the total amount of claims submitted for individual income taxpayers in a tax year is an amount less than $2 million, the remaining unclaimed amount shall be made available for claims associated with other eligible taxpayers. A taxpayer claiming the tax credit shall provide documentation supporting the tax credit claim in a form and manner prescribed by the department of revenue. A tax credit issued under the bill is not transferable to any person. The bill applies retroactively to electric outdoor power equipment purchased on or after January 1, 2024, for tax years occurring on or after that date.