Senate Co-Sponsorship Memoranda

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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted:	January 10, 2013 05:54 PM
From:	Senator Matt Smith
To:	All Senate members
Subject:	Sustainable Development and Manufacturing Tax Credit Package

In the near future I plan to introduce several pieces of legislation, similar to House Bills 433, 434, 490, and 491 of the 2011-2012 session, which would establish a series of tax credits for businesses and individuals to encourage sustainable development, green building, and green manufacturing practices. This package is part of the PA WORKS agenda designed to stimulate job growth in the Commonwealth.

Document #1

Introduced as SB221

Description:	The first piece of legislation would establish the High Performance Buildings Tax Credit. My proposal would provide a base tax credit of $35,000 to residential owners or tenants and commercial owners or tenants for either the construction of a green building or the rehabilitation of a non-green building into a green building. In addition, a tax credit based on the size of the building and three possible levels of performance may be given, with the total cost of the credit not to exceed $10 million per year. This tax credit can be a tool that helps catalyze green building and energy efficiency. If you have any questions about this legislation, please feel free to contact my office.

Document #2

Introduced as SB238

Description:	The second piece of legislation would establish an Energy Star Rated Product Manufacturing Tax Credit, which would enable the manufacturers of Energy Star rated products to apply for a tax credit on the capital, operation, and maintenance costs associated with the manufacture of Energy Star products, not to exceed 20 percent of those costs. The total cost of the tax credit will be capped at $10 million per year. The proposal defines Energy Star rated products as those products that meet the certifications of the U.S. Department of Energy and are used as part of a plan to reduce total annual energy and power costs. Energy Star rated products are valuable to the continued effort of energy conservation by reducing energy consumption and fossil fuel emissions across the nation. Furthermore, homeowners and businesses that have purchased Energy Star products have reported significant savings annually on total energy costs. By offering the Energy Star Rated Product Manufacturing Tax Credit, I believe we will promote and stimulate the manufacture and use of these pivotal energy and cost-saving technologies. If you have any questions about this legislation, please feel free to contact my office.

Document #3

Introduced as SB240

Description:	The third piece of legislation would establish the Energy Star Rated Glass or Window Technologies Tax Credit, which enables manufacturers of energy-efficient glass technologies to apply for a tax credit on the capital, operation and maintenance costs associated with the manufacturing of their product. This proposal defines Energy Star rated glass technologies as those glass products that meet certain specifications set forth by the Department of Energy and are used as part of a plan to reduce the total annual energy and power costs in a building. The total cost of the tax credit will not exceed $10 million per year. Energy Star rated glass is a valuable alternative energy product. Certain glass technologies in windows have been shown to reduce heating and cooling bills by blocking unwanted heat gain during the summer and preventing heat loss in the winter. Other energy-efficient glass technologies have been shown to reduce the exposure to harmful ultraviolent (UV) rays. Additionally, because energy-efficient glass technologies decreases the amount of heating and cooling required for comfortable living, homes that use energy-efficient windows can often save money by installing smaller furnaces and/or air conditioning units. I believe that by offering this tax credit, we will promote and stimulate the manufacture of these pivotal energy and cost-saving glass technologies. If you have any questions about this legislation, please feel free to contact my office.

Document #4

Introduced as SB239

Description:	The final piece of legislation would establish a Green Roof Tax Credit. Generally, a green roof consists of vegetation planted in soil over a waterproof membrane. Besides being aesthetically pleasing, green roofs provide environmental and economic benefits. Such environmental benefits include the absorption of air pollutants, the reduction of urban heat islands by providing shade, and the reduction of sewage system loads through assimilation of large amounts of rainwater. Furthermore, green roofs protect underlying roofing material by eliminating a roof’s exposure to ultraviolet rays and harsh temperature fluctuations. Aesthetically, green roofs serve as living environments for birds and other small animals, reduce noise pollution, and insulate a building from extreme temperatures. The green roof tax credit provides a monetary incentive for individuals and businesses to build and maintain green roofs. Individual applicants can receive relief against the personal income tax of up to 25% of construction and maintenance costs incurred, with a maximum of $100,000 annually, for up to six years. Business applicants can receive relief against the sales, franchise, or corporate net income tax of up to 25% of construction and maintenance costs incurred, with a maximum of $100,000 annually, for up to six years. Finally, my legislation creates oversight mechanisms for the Department of Revenue, which include limitations on the tax credit, as well as credit clawback provisions. This tax credit is also capped at $10 million annually. If you have any questions about this legislation, please feel free to contact my office.