California lawmakers are set to pass a bill encouraging insurance companies to invest in "green" technology projects in low-and moderate-income urban and rural communities.
The program is voluntary and provides tax incentives.
The bill would make insurers eligible for a 20% tax credit for qualified investments in clean energy projects, efficiency improvements, environmental technology initiatives and other efforts. Concerns about creating a revenue shortfall dimmed prospects for A.B. 1011, but negotiators worked out a solution, said Assemblyman Dave Jones, D-Sacramento.
The legislation would now add environmentally friendly investments to a list of allowed projects under the California Organized Investment Network program.
COIN is a collaborative effort among insurance regulators, the insurance industry, community affordable housing and economic development organizations.
The collaboration generally promotes the development of affordable housing or the formation of new businesses.
"It's mostly about investment in low- and moderate-income communities," said Jones.
He is the Democratic candidate for state insurance commissioner in the November election.
The bill should clear final legislative hurdles and be sent to Gov. Arnold Schwarzenegger before the end of the legislative session on August 31st.
Source: Press Release
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