Sens. Angus King (I) and Bill Cassidy (R-LA) have introduced legislation that would allow working waterfronts to claim a thirty percent disaster mitigation tax credit on up to $1 million in expenses.
If approved, this would allow such properties to claim a deduction of as much as $300,000 in expenses related to their efforts to mitigate potential damage.
The amount of this deduction would increase annually based on a cost-of-living adjustment and rounded to the nearest multiple of $10,000.
Working waterfronts would only be allowed to claim this deduction once every ten years.
Projects eligible for this deduction may include those designed to address concerns regarding structural elevation or flood risk, as well as those related to shoreline stabilization efforts. Also eligible would be projects that retrofit existing structures to reduce the likelihood of future weather-related damage.
Deductions could also be taken for the installation of warning systems that alert residents of “impending hazards.”
Click Here to Read the Full Text of the Bill
“Maine’s coastal communities are changing,” said Sen. King. “From a warming climate to an evolving economy, the Gulf of Maine faces both historic opportunities and challenges that will define our state’s success for generations.”
“The Working Waterfronts Disaster Mitigation Tax Credit Act would provide working waterfronts up and down the coast of Maine with the necessary financial resources to adapt to the rapidly shifting dynamics of natural disasters affecting economic and tourism operations,” King continued.
“Thanks to Senator Cassidy for working with me to ensure our waterfront businesses have the necessary tools and resources to thrive for years to come,” he concluded.
“Let’s empower coastal businesses to invest in flood and disaster prevention before a storm hits,” said Sen. Cassidy. “Doing so protects our way of life, fishing and coastal industries, and the livelihoods of Louisiana families.”
Click Here to Read Sen. King’s Full Press Release
Earlier this summer, Maine’s state government awarded $21.2 million worth of grants across to 68 projects to help working waterfront properties repair damage suffered as a result of the severe storms that swept through the state this past winter.
Although there was broad bipartisan support for funding this initiative, there was stark, party-line disagreement over where the money for these program ought to be sourced.
[RELATED: $21.2 Million in State Grants Awarded to Repair Winter Storm Damage on Working Waterfront]
While Democrat lawmakers backed the plan to utilize funds from the Budget Stabilization Fund (BSF), Republican legislators advocated for the money to be drawn from the unappropriated General Fund surplus.
[RELATED: $60 Million for Storm Relief Initiatives Soon to Be Transferred from Budget Stabilization Fund]
Colloquially known as the Rainy Day Fund, the BSF is statutorily required to be used primarily as a reserve account to offset state expenses in the event of a General Fund revenue shortfall.
The BSF may also be used to to provide assistance to the families of fallen first responders or cover specifically-defined expenses during certain emergency situations.
As of this article’s publication, additional information on the legislation introduced by King and Cassidy is not yet available from Congress’ official website.
<span class="dsq-postid" data-dsqidentifier="29828 https://www.themainewire.com/?p=29828">3 Comments
Must be election season,
That picture(Cape Elizabeth?) Is that what they consider working waterfront?
The only work being done in the picture is landscaping, not what I call a working waterfront.