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S 5992

Creates a small business electric energy tax credit

2025 Regular Session Introduced by April Baskin

Creates a state small-business electric energy tax credit to offset electricity costs and fund qualifying energy upgrades, aiding cash flow and resilience.

REFERRED TO BUDGET AND REVENUE
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Bill Summary · S 5992

Summary of Senate Bill S 5992 — Creates a Small Business Electric Energy Tax Credit

Overview

Senate Bill S 5992 proposes to establish a new tax credit designed to assist small businesses with electric energy costs or investments related to electricity. The bill was introduced on March 4, 2025 and has been referred to the Budget and Revenue committee.

Purpose and Intent

  • Provide a targeted tax relief mechanism to help small businesses manage electricity expenses.
  • Encourage energy efficiency and/or the adoption of electricity-related improvements or technologies (as the bill’s provisions specify) to reduce operational costs over time.
  • Promote economic activity and small-business resilience by offsetting electric energy costs.

Key Provisions (as indicated by the bill’s title and status)

  • Establishment of an electric energy tax credit specifically for small businesses.
  • The exact parameters are not provided in the available information. Details likely to be defined in the full text include:
    • Definition of “small business” (size thresholds based on employees, revenue, or other criteria).
    • Eligible costs or investments (e.g., electricity expenditures, energy efficiency upgrades, or investments in electric infrastructure/renewables).
    • Credit amount or calculation method (percentage of eligible costs, fixed amount, or tiered structure).
    • Any caps per taxpayer, carryforward provisions, and refundability.
    • Sunset date or duration of the credit.
    • Administrative process for claiming the credit (documentation, verification, deadlines).
  • Credit likely would be claimed against a state tax type (e.g., corporate, personal income tax, or a specific business tax) as defined in the bill (text not provided in the summary).

Eligibility and Beneficiaries

  • Targeted at small businesses within the state (definition of “small business” to be specified in the bill).
  • Eligible entities would be those incurring electric energy expenses or undertaking qualifying electric-related investments under the bill’s definitions and criteria.

Administration and Compliance

  • Expected to be administered by the state Department of Revenue or equivalent tax authority (typical for tax credits).
  • Claim process would require documentation of eligible electric energy costs or investments and adherence to any reporting requirements outlined in the final text.

Procedural Status and Timeline

  • Introduced: March 4, 2025.
  • Status: Referred to Budget and Revenue (2025-03-04).
  • Next steps (typical): Committee consideration, potential amendments, floor vote, and, if approved, transmission to the governor for signature or veto. If enacted, the credit would become part of the state revenue/expense framework with associated fiscal implications.

Related Legislation

  • S 7702 (prior-session)
  • S 3961 (prior-session)
  • S 4646 (prior-session)
  • The existence of these related bills suggests ongoing legislative interest in small business energy credits and may provide context or alternative formulations in the current bill’s drafting.

Potential Impacts (informational)

  • Economic: Could reduce operating costs for small businesses with electric energy expenditures or investments in energy-related improvements.
  • Fiscal: Potential reduction in state revenue or shifts in budget allocations; exact impact depends on credit size, eligibility, and take-up.
  • Administrative: Adds a new compliance requirement for businesses and a new credit administration task for the tax authority.

Notes

  • The narrative above reflects the information currently available. For precise credit amounts, eligibility thresholds, eligible expenditures, carryforward provisions, and sunset dates, the full text of S 5992 will be required. Readers should monitor committee hearings and the bill’s text for definitive details.

Compiled from official sources — confirm details with the bill’s official record.

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