Amendment 738

Budget Amendment ID: FY2022-S3-738-R1

Redraft ECO 738

Cranberry Credits

Ms. Moran moved that the proposed new text be amended by inserting after section 13 the following 3 sections:-

“SECTION 13A. Paragraph (1) of subsection (w) of said section 6 of said chapter 62, added by section 57 of the chapter 358 of the acts of 2020, is hereby amended by striking out the definition of “Qualified renovation expenditure” and inserting in place thereof the following definition:-

“Qualified renovation expenditure”, an expenditure or a cost directly incurred in connection with the qualified renovation of a cranberry bog; provided, however, that “qualified renovation expenditure” shall not include costs incurred in acquiring or purchasing property for the construction of facilities or structures for the cultivation, harvesting or production of cranberries.

SECTION 13B. Subparagraph (iii) of paragraph (2) of said subsection (w) of said section 6 of said chapter 62, as so added, is hereby amended by striking out the words “, for the period beginning January 1, 2020 and ending December 31, 2024,”.

SECTION 13C. Said subsection (w) of said section 6 of said chapter 62 is hereby repealed.”; and

by inserting after section 16 the following 2 sections:-

“SECTION 16A. Said chapter 63 is hereby further amended by inserting after section 38HH the following section:-

Section 38II. (a) As used in this section, the following words shall have the following meanings unless the context clearly requires otherwise:

“Commissioner”, the commissioner of revenue.

“Cranberry bog”, an area actively cultivated for the harvesting or production of cranberries.

“Qualified renovation”, the renovation, repair, replacement, regrading or restoration of a cranberry bog for the cultivation, harvesting or production of cranberries or any other activity or action associated with the renovation of an abandoned cranberry bog; provided, however, that “qualified renovation” shall not include the construction of facilities or structures for the processing of cranberries.

“Secretary”, the secretary of energy and environmental affairs.

“Taxpayer”, a taxpayer subject to taxation under this chapter.

(b)(1) A taxpayer primarily engaged in cranberry production shall be allowed a credit against the taxes imposed by this chapter equal to 25 per cent of the total qualified renovation expenditures incurred in connection with the qualified renovation of a cranberry bog during the taxable year; provided, however, that the amount of the credit that may be claimed by a taxpayer under this section shall not exceed $100,000.

(2) The credit under this section shall be taken against the taxes imposed under this chapter and shall be refundable. The commissioner shall apply the credit against the liability of the taxpayer as determined on its return, as first reduced by any other available credits, and shall then refund to the taxpayer the balance of the credits. If the amount of the credit allowed under this section exceeds the taxpayer's tax liability, the commissioner shall treat the excess as an overpayment and shall pay the taxpayer the entire amount of the excess. Any amount of the tax credit that exceeds the tax due for a taxable year may be carried forward by the taxpayer to any of the 5 subsequent taxable years.

(3) The secretary, in consultation with the commissioner of agricultural resources, shall authorize annually tax credits under this subsection together with subsection (w) of section 6 of chapter 62 in an amount not to exceed $2,000,000 per taxable year. No credits shall be allowed under this section except to the extent authorized in this section.

(c) For a taxpayer to qualify for the credit provided for under this section, the taxpayer shall file with the secretary a summary of qualified renovation expenditures in connection with the qualified renovation. The secretary shall approve the summary of qualified renovation expenditures and provide notice to the commissioner. Any qualified renovation expenditures applicable to this credit shall be treated for purposes of this section as made on the date that the secretary provides notice of the certification to the commissioner.

(d) Any portion of tax credits not awarded by the secretary in a calendar year shall not be applied to awards in a subsequent calendar year. The secretary shall provide any documentation that the commissioner may deem necessary to confirm compliance with paragraph (3) of subsection (b) and the commissioner shall provide a report confirming compliance to the secretary of administration and finance.

(e) Annually, not later than September 1, the secretary shall file a report with the house and senate committees on ways and means, the joint committee on environment, natural resources and agriculture and the joint committee on revenue identifying the total amount of tax credits claimed and the total amount of tax credits refunded pursuant to this section in the preceding fiscal year.

(f) The secretary, in consultation with the commissioner of agricultural resources and the commissioner of revenue, shall promulgate regulations or other guidelines necessary for the administration and implementation of this section.

SECTION 16B. Section 38II of said chapter 63 is hereby repealed.”; and

by inserting after section 60 the following 2 sections:-

“SECTION 60A. Subsection (w) of section 6 of chapter 62 of the General Laws, as amended by sections 13A and 13B, shall take effect for taxable years beginning on or after January 1, 2020.

SECTION 60B. Section 38II of chapter 63 of the General Laws, as inserted by section 16A, shall take effect for taxable years beginning on or after January 1, 2020.”; and

by inserting after section 62 the following section:-

“SECTION 62A. Sections 13C and 16B shall take effect on January 1, 2025.”.