Adjustments to Tax Expenditures to Reduce Burden
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for allFor the income taxyearsyear commencing onor afterJanuary 1, 2024, from the currentlevelslevel of 38%for income tax years commencing in2024, 25% for income tax years commencing in 2025, and 20% for income tax years commencing in 2026 or any later yearto 50%; - For the income tax year commencing on January 1, 2025, from the current level of 25% to 35%; and
- For income tax years commencing on or after January 1, 2026, from the current level of 20% to 30%.
- If the estimated adjustment factor is equal to or greater than 3% but less than 3.25%, the credit can be claimed at 35% of the federal credit;
- If the estimated adjustment factor is equal to or greater than 3.25% but less than 3.5%, the credit can be claimed at 40% of the federal credit;
- If the estimated adjustment factor is equal to or greater than 3.5% but less than 3.75%, the credit can be claimed at 45% of the federal credit; and
- If the estimated adjustment factor is equal to or greater than 3.75%, the credit can be claimed at 50% of the federal credit.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)