February 8th, 2012 by WCBC Radio
Local legislators once again this year find themselves battling an attempt to eliminate the state’s mined coal tax credit. The coal credit is an important incentive for the local industry. Adrienne Ottaviani, executive director of the Maryland Coal Association, says that public service companies and a few other designated companies receive a $3-per-ton credit for purchasing Maryland-produced coal. The credit cannot pay a company anything over its tax liability for the year; it can only apply up to the limit of the tax liability. The public service providers rebate part of their savings back to coal companies based on their contracts with the companies. The effect of the law, currently set to expire in 2021, is to encourage purchase of Maryland coal by Maryland companies. The Allegany County Commissioners are being briefed this week on the issue by Ottaviani. She said while the credit has survived battles to eliminate it in the past thanks to support from key lawmakers- this year the governor seems more determined to see the tax credit repealed…
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