S.B. 777 Summary

• Establishes a temporary income tax credit for taxpayers who upgrade, convert, or connect qualified cesspools to approved wastewater systems or sewerage systems.

• Qualified cesspools must be certified by the Department of Health and include those within 500 feet of shorelines/streams/wetlands, in source water assessment areas, impacting drinking water supplies, or residential large capacity cesspools serving multiple dwellings.

• Credit equals qualified expenses up to a maximum amount per cesspool, with higher limits for residential large capacity cesspools calculated per connected dwelling unit.

• Annual aggregate credit cap applies statewide, with excess credits from capped years carried forward to subsequent years; taxpayers must claim credits within 12 months of tax year close.

• Tax credit applies to taxable years beginning after December 31, 2023, with the provision expiring and being repealed on December 31, 2028; effective date is July 1, 2050.