Environmental Taxes Can Help Improve Quality of Life

Urban sprawl, quality of life and protecting the environment are emerging as growing civic concerns and frontline campaign issues. Many states are responding to these interrelated challenges with environmental tax legislation.

In the West, Colorado enacted HB 1155 which provides tax credits for individuals and corporations that donate a conservation easement to a government or non-profit organization. The Rocky Mountain state also passed a clean fuel credits bill providing a sales and use tax exemption for purchasers of low emissions vehicles and certified alternative fuel motor vehicles. Washington passed a timber tax reduction bill intended to protect salmon populations. The bill, which establishes new restrictions on timber harvesting, provides a tax credit for those complying with restrictions.

Pennsylvania enacted a Coal Waste Removal and Ultraclean Fuels Act offering tax credits to developers that produce ultraclean fuels from coal and silt-fed stocks. Maryland approved HB 363/SB 390, providing employers a tax credit equal to 50 percent of the cost of providing mass transit or carpooling benefits to their employees. The credit, which would take effect in 2000, could be claimed against a variety of corporate taxes.

For more information on environmental taxes visit the CPA website at: www.stateaction.org/issues/environment/etax/index.cfm.