The House Finance Committee advanced a bill that provides a tax credit for downstream natural gas manufacturing facilities that create a certain amount of new jobs and investment
House Bill 4019, called the Downstream Natural Gas Manufacturing Investment Tax Credit Act of 2020, sets standards for this proposed tax credit.
The credit would be used against a portion of the personal income tax or corporate net income tax as a result of new or expanded downstream natural gas manufacturing, provided that it results in new jobs.
The company would have to create at least five new jobs to claim a 10% credit and up to 150 new jobs to claim 20%. These would have to be full-time permanent jobs.
Delegates asked about a provision under the bill that would allow companies to get an additional percentage for construction jobs to be allowed in the calculation to go into the tax credit. Counsel for the committee explained that the company has to meet certain qualifications, such as having more than 50 construction workers, to get the additional 5% credit.
Companies can claim the credit once they are in operation, and for up to 10 years but may carry unused credits forward for an additional 10 years.
The effective date of qualified investments would be after July 1, 2020.
The Finance Committee also advanced House Bill 4558, which would create a new personal income tax credit for volunteer firefighters. The committee substitute changed the amount of credits per year from $5,000 to $1,000, $2,000 for a married couple, and made the credit nonrefundable.
The credit would be allowed for volunteer firefighters after December 31, 2022.
Another bill that advanced out of committee Wednesday was House Bill 4409, which transfers the remaining funds out of the Volunteer Fire Department Workers’ Compensation Premium Subsidy Fund to the Fire Service Equipment and Training Fund, and the State Auditor’s Chief Inspector’s Fund to defray costs incurred from audits.
Counsel explained that funds come from insurance premiums taxes and for the past seven years, money was diverted from the Fire Protection Fund into a subsidy fund, which is ending June 30.
All three bills now head to the full House for consideration.