Governor's Spotlight: Clean Hydrogen, Medical Cannabis, Tax Cuts & More

NM Lawmakers Kill Gov’s Clean Hydrogen Bill:

The New Mexico House Energy, Environment and Natural Resources Committee voted to table Gov. Michell Lujan Grisham’s (D) proposal to make the state a hub of hydrogen production by offering tax incentives to develop the infrastructure to separate the energy source from natural gas.

Under HB 4, companies in several industries would have received tax credits to develop “clean hydrogen” and set the state up to be one of four hydrogen hubs being planned by the Biden administration. The bill also includes requirements for emission reduction targets in projects throughout the state.

The measure drew support from the oil and gas industries and a plethora of local economic development groups, but fierce opposition from environmental groups, who contend it would actually lead to the burning of more fossil fuels, and Republicans, who argued it would lead to higher overall energy prices.

The measure’s prospects remain unclear, though the measure’s sponsor, Rep. Patricia Lundstrom (D), said they would continue to work toward a revised proposal that could possibly gain legislative approval this session.

“I’m not done yet. The governor’s not done yet. We’re going to be putting together our strategies,” she said. (CARLSBAD CURRENT ARGUS, SANTA FE NEW MEXICAN)

Fellow Reeps Reject SD Gov’s Anti-Abortion Proposal:

South Dakota Republican leaders declined to take up a proposal from Gov. Kristi Noem (R) that would have banned abortion at the first detection of a fetal heartbeat. House Majority Leader Kent Peterson and House Speaker Pro Tempore Jon Hansen, both Republicans, said the measure was premature in light of various pending litigation they believe could strike down Roe v. Wade, the landmark U.S. Supreme Court case that legalized abortions in 1973. Their stance angered Noem, who said she was “disappointed in their action today.” (ARGUS LEADER [SIOUX FALLS])

MS Gov. Signs Off on Medical Cannabis:

Saying there is “no doubt that there are individuals in our state who could do significantly better if they had access to medically prescribed doses of cannabis,” Mississippi Gov. Tate Reeves (R) signed legislation making the Magnolia State the 39^th to allow medicinal marijuana use.

Under SB 2095, consumers will be allowed to buy up to 3.5 grams of cannabis per day for up to six days a week, or about 3 ounces per month. The law establishes taxation guidelines and bars the state from providing economic development incentives for the cannabis industry. It also supersedes a 2020 voter-approved ballot measure later invalidated by the courts on a technicality. (ASSOCIATED PRESS, MJBIZ DAILY)

Multiple Govs Pitch Tax Cuts:

A Number of governors have pitched a wide variety of tax cuts in their budget proposals for the upcoming fiscal year.  

Illinois Gov. J.B. Pritzker’s (D) budget proposal includes almost $1 billion in temporary tax cuts. Under that proposal, the state would temporarily suspend the state’s 1 percent sales tax on groceries and a planned 2.2 center-per-gallon increase in the state gas tax, as well as issue $475 million in property tax rebates.

Virginia Gov. Glen Youngkin (R) and Gov. Laura Kelley (D) of Kansas have also called for eliminating the grocery tax in their states, while Florida Gov. Ron DeSantis (R) has pitched cutting the Sunshine State gas tax.

A budget proposal issued on Wednesday by Connecticut Gov. Ned Lamont (D) would produce about $336 million in tax cuts, primarily by expanding eligibility for the state’s property tax credit and imposing a cap on local property taxes on vehicles.

A sweeping proposal from Pennsylvania Gov. Tom Wolf (D) for spending federal pandemic relief dollars includes putting $204 million into the state’s Property Tax Rent Rebate program to pay for a one-time doubling of those rebates.

A proposal from Iowa Gov. Kim Reynolds (R) would establish a flat 4 percent individual income tax rate, eliminate the state tax on retirement income and cut the corporate tax rate from the current 9.8 percent down to 5.5 percent.

Arizona Gov. Doug Ducey (R) has also proposed cutting corporate taxes, but for the first time in his eight years in office he is also seeking tax relief for the Grand Canyon State’s lowest earners. Ducey’s plan would create a new 5.5 percent earned income tax credit for residents making $50,000 a year or less. (LAW 360, SIOUXLAND PROUD, ARIZONA REPUBLIC, ASSOCIATED PRESS, CONNECTICUT MIRROR, CHICAGO TRIBUNE, PENNLIVE)

-- Compiled by RICH EHISEN