The Senate General Conference Committee on Appropriations (GCCA) passed legislation to eliminate $31.5 million in tax credits to help fill the budget hole and fund state services for the FY 2011. OPEA has been working over the past several months encouraging legislators to investigate tax credits.
“OPEA staff met with House and Senate leadership and members have been calling their legislators on the need to suspend tax credits to help fund state services,” said OPEA Executive Director Sterling Zearley. “We hope the legislature will continue to look into more tax credits to reduce cuts to state agencies.”
SB 1590 (Johnson/Miller) eliminates the qualified small business capital and the rural small business capital credits for savings of $7.1 million and $24.3 million. The total savings increases to $48.6 in FY 2012. The legislation must still pass the House GCCA and the floor of both the House and the Senate.
According to the Tax Commission, the state has 460 tax exemptions which cost state coffers $5.5 billion annually. Senate GCCA Chairman Mike Johnson told the committee more tax credits were on the table to be eliminated.
OPEA members should continue to contact legislators and tell them to continue to investigate tax credits to help fund state services. In addition, the cuts should be balanced across state government with no function held harmless. (for more information click here and go to “Call Legislators Now about the Budget.”
For the most recent legislative alerts check the Legislative Action Center by clicking on “Take Legislative Action” under “Quick Links” at the top right corner of the OPEA website.
Posted on
Tue, May 4, 2010
by Trish Frazier