The State House of Representatives on Tuesday passed a tax code bill that has some significant changes to it.
Some of the changes include the acceleration of corporate tax rate cuts and an increase in the corporate net operating loss carryover allowance, which have been items that Republicans have been seeking. Other changes include tax provisions including a state-earned income tax equal to 25% of the federal credit, an increase in child care tax credit, and indexing the poverty exemption for state income tax to inflation. The bill would also enact “combined reporting”, which is a requirement for businesses to disclose certain cash flows of subsidiaries.
In a statement, State Senator Joe Pittman said that he was happy with State House Democrats, saying what was passed was “a historic shift in tax policy, which is very intriguing. Observing the House moving from performative to substantive action is a step in the right direction. I am eager to know what the governor would do upon this legislation reaching his desk.”
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