HB 232-MUNICIPAL TAX CREDITS  4:50:39 PM CHAIR SPOHNHOLZ announced that the final order of business would be HOUSE BILL NO. 232, "An Act relating to a municipal air quality improvement tax credit; and relating to a municipal energy efficient new construction tax credit." 4:51:24 PM REPRESENTATIVE GRIER HOPKINS, Alaska State Legislature, as prime as sponsor, gave a brief introduction to HB 232. The bill, he said, is being presented at the request of Fairbanks North Star Borough. HB 232 allows local governments to offer municipal tax credits to home and business owners who invest in property improvements which result in increased energy efficiency or local air quality. This bill does not mandate any action by municipalities - it offers local governments additional avenues for addressing local challenges and priorities. He explained that the committee substitute (CS) from the previous committee expanded opportunities for the construction to include retrofits, refurbishments, and remodels. Additionally, the CS removed the restriction on the air quality improvements, making it more available to all municipalities within the state. He pointed out that HB 232 is a short bill. Section 1 pertains to the air quality tax credits and Section 2 involves the construction tax credits. 4:53:20 PM BRYCE WARD, Mayor, Fairbanks North Star Borough, said that the air quality tax credit and the energy exemption were both identified as priorities for the Fairbanks North Star Borough. The air quality tax credit was originally asked to be a reauthorized section of law that sunset in 2016. It would allow the borough to encourage and incentivize efficiency improvements that would benefit the air quality issue in Fairbanks. He stated that the energy efficiency exemption is similar. It allows the borough to incentivize efficiency and efficient construction. This would allow the municipalities to develop programs that would encourage efficient construction and efficient design of buildings. The concept of how this idea pays for itself is that a higher efficiency building, in theory, is worth more, which encourages higher value and in turn, affects the total (indisc.) value over the life of that building. He noted that each program is optional, which gives local communities the ability to tailor them to their needs. 4:56:29 PM CHAIR SPOHNHOLZ announced that HB 232 was held over.