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SENATOR NICK GAUTREAUX APPLAUDS GOVERNOR'S SUPPORT OF TAX RELIEF FOR WORKING FAMILIES AND ALTERNATIVE ENERGY DEVELOPMENT GOVERNOR SIGNS SENATE BILL 90 INTO LAW Senate Bill 90 by District 26 State Senator Nick Gautreaux (D-Meaux) is now law. Governor Blanco agreed to support the series of tax breaks and incentives detailed in the bill in an effort to help Louisiana's hardworking families. The incentives and tax breaks outlined in SB 90 are designed to encourage economic development, promote the use of alternative energy, provide some tax relief to families from high insurance rates, repeal the state gift tax, and clarify the phase-out of the state inheritance tax. Combined, the proposals are estimated to save taxpayers over $111 million in the next five years. "In the Senate I have worked to be a strong voice for hardworking citizens who do not have high-priced lobbyists watching out for them at the state capitol," said Sen. Gautreaux. "It is important that we stand up for Louisiana families and give them the tools they need to improve themselves and their communities. The tax break and incentives detailed in SB 90 are designed to do just that." Senate Bill 90 provides several important tax measures. First, it provides incentives for citizens to move towards alternative energy sources by providing a refundable state individual or corporate income tax credit to homeowners and apartment owners who install and/or use certified wind or solar energy systems. A refundable tax credit allows the incentive to be useful for residential property owners regardless of income. Officials estimate that this provision will be one of the most effective in the country for promoting solar energy, and that it will lead to economic development as the alternative energy industry develops here. The tax credit is fifty-percent of the first $25,000 invested into the equipment and its installation, beginning Jan 1, 2008. The new tax credit is expected to provide about $500,000 a year in tax relief for citizens. Under Senator Gautreaux's leadership, the Senate also voted to include other measures to give Louisiana's working families tax relief. One of the measures outlined in SB 90 will provide a one-time, refundable 2008 income tax credit equal to 7% of the cost of a homeowner's or tenant's property insurance premium in that year less any tax credits already received in connection with Citizens' assessments. SB 90 also addresses the phase-out of the state inheritance tax to allow a tax refund beginning with the 2008 tax year for those who paid inheritance taxes because the succession was not opened in a timely manner after the state tax was phased out in 2004. Finally, the bill repeals the state gift tax as of July 1, 2008, which is expected to save taxpayers about $3.8 million annually. For information on this and other important issues, citizens can go to http://senate.la.gov/GautreauxN/ .
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