LD 1873 LR 1495(02)
An Act to Provide Heating Relief with Tax-free Home Energy Savings Accounts
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
FY 2023-24 FY 2024-25 Projections  FY 2025-26 Projections  FY 2026-27
Net Cost (Savings)
General Fund $0 $43,536,721 $50,565,830 $53,097,471
General Fund $0 $311,721 $405,830 $419,971
General Fund $0 ($43,225,000) ($50,160,000) ($52,677,500)
Other Special Revenue Funds $0 ($2,275,000) ($2,640,000) ($2,772,500)
Fiscal Detail and Notes
This bill establishes an individual income tax deduction for electricity costs of up to $2,500 for electricity used in a taxpayer's household during the tax year. This deduction is estimated to affect more than 400,000 individual income tax returns annually. It will reduce General Fund revenue by $43,225,000 and  Local Government Fund revenue by $2,275,000 in fiscal year 2024-25.

The bill includes ongoing General Fund appropriations to the Department of Administrative and Financial Services, Bureau of Revenue Services beginning at $300,721 in fiscal year 2024-25 for one Senior Tax Examiner position and two Tax Examiner positions starting October 1, 2024 to audit tax returns claiming the income tax deduction for electricity costs. It also includes a one-time General Fund appropriation of $11,000 in fiscal year 2024-25 for computer programming costs associated with the new tax deduction.