HB1773 Summary

• Replaces terminology throughout the Water Resource Conservation and Development Incentives Act, changing "taxpayer" to "approved applicant" and clarifying definitions for water conservation projects.

• Repeals § 26-51-1006 (tax credits for water impoundments within critical groundwater areas), eliminating preferential credit treatment for projects in critical areas.

• Increases maximum tax credits per project: water impoundments from $90,000 to unchanged; surface water conversion outside critical areas from $9,000 annual cap to $27,000 per project; and surface water conversion within critical areas to $27,000 for agricultural/recreational and $1,000,000 for industrial/commercial projects.

• Restructures pass-through entity tax credit limitations to allow credits to be used up to $9,000 annually per entity or by individual members based on their tax liability, with extended carryover periods of 2-4 years depending on project type.

• Declares an emergency effective immediately due to litigation over credit amounts that exposed the state to additional tax liability.