California Legislators Propose Legislation to Reduce Taxes on Environmental Credits
The suggested legislation aims to eliminate taxes on the income generated from environmental credit sales.
A bill introduced in the California Senate seeks to enable residents to access a federal tax advantage that is already available in 45 other states.
State Senator Steve Padilla (D-San Diego) proposed the bill on February 10, with support from the chairs of both the Assembly and Senate energy committees.
California State Senate Minority Leader Brian Jones (R-San Diego) remarked to The Epoch Times that SB 302 represents a pragmatic reform to align California with federal law and other states that do not impose taxes on the income from environmental credit sales.
“It’s nonsensical for the government to sell these credits to promote clean energy, only to tax the resulting income,” Jones stated in an email to The Epoch Times.
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“This double taxation increases costs, discourages investment, and contradicts the very incentives it aims to provide. Given our state’s affordability challenges, we must explore every avenue to lower energy expenses and offer necessary relief, and this legislation is a constructive move towards that goal.”
“California stands out among states for its lack of alignment between state and federal tax systems, resulting in higher costs for ratepayers,” Doyle noted.
As stated in SB 302, California must nearly double its clean energy capacity within the next five years to meet its environmental and energy targets, which include achieving a net-zero carbon economy by 2045 through various legislations and guidelines.
Furthermore, SB 1020 stipulates that renewable and zero-carbon sources must supply 100 percent of the electricity procured for all state agencies by December 31, 2035, and 100 percent of all retail sales by December 31, 2045.
Officials assert that SB 302 would aid the state in meeting these ambitious environmental goals.
“California requires more energy, not less,” Padilla stated. “Aligning our tax laws with federal regulations will facilitate lower costs for energy projects, benefiting all Californians.”
