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Chamber of Commerce Supports Coal Tax Credit

January 24th, 2013 by WCBC Radio

The Allegany County Chamber of Commerce is strongly supporting the retention of the mined coal tax credit. In a letter Delegate Sheila Hixson, the chairwoman of the House Ways and Means Committee,  stating that unlike other areas of the state, the immediate repeal of tax credits allowed for the purchase of Maryland-mined coal would have a direct effect on Western Maryland. The letter points out that many companies have signed contracts anticipating the use of the tax credit. Governor Martin O’Malley supports the repeal of the coal tax credit in his 2014 budget, released earlier this month. The effect of the law, currently set to expire in 2021, is to encourage purchase of Maryland coal by Maryland companies. The fiscal and policy note prepared in 2012 for the repeal bill by the nonpartisan Department of Legislative Services indicates a few million dollars in savings for the state should the credit be repealed early. Chamber Director Stu Czapski said that Allegany and Garrett companies affected by this repeal, if unable to absorb these losses, will inevitably need to eliminate jobs.

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