HB 2694 Summary

• Establishes an income tax credit for taxpayers who voluntarily relinquish private water systems to their county, with the credit equal to the county-assessed value of the water system (amount not to exceed a specified limit).

• Tax credit applies to taxable years beginning after December 31, 2023 and ending before December 31, 2029; excess credits may be carried forward to subsequent years until exhausted.

• Directs the Attorney General to commence eminent domain proceedings to acquire privately-owned water systems in counties with populations between 100,000 and 200,000.

• Appropriates funds from the state general fund to the Department of the Attorney General for fiscal year 2024-2025 to conduct eminent domain proceedings (specific amount not filled in).

• Exceeds the state general fund expenditure ceiling for fiscal year 2024-2025 based on legislative determination that the appropriation is necessary to serve the public interest in promoting water access equity.