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IA HF352

IA HF352
A bill for an act relating to an entity-level taxation election for pass-through entities and allowing a partner or shareholder to claim a credit against the individual and corporate income taxes and the franchise tax, and including effective date and retroactive applicability provisions. (Formerly HSB 69.) Effective date: 05/11/2023. Applicability date: 01/01/2022.


summary

Introduced
02/20/2023
In Committee
04/18/2023
Crossed Over
04/13/2023
Passed
05/09/2023
Dead
Signed/Enacted/Adopted
05/11/2023

Introduced Session

90th General Assembly

Bill Summary

AN ACT RELATING TO AN ENTITY-LEVEL TAXATION ELECTION FOR PASS-THROUGH ENTITIES AND ALLOWING A PARTNER OR SHAREHOLDER TO CLAIM A CREDIT AGAINST THE INDIVIDUAL AND CORPORATE INCOME TAXES AND THE FRANCHISE TAX, AND INCLUDING EFFECTIVE DATE AND RETROACTIVE APPLICABILITY PROVISIONS.

AI Summary

This bill allows pass-through entities (partnerships and S corporations) to elect to be taxed at the entity level, rather than having the income pass through to the individual partners or shareholders. The bill provides a credit to the individual partners or shareholders to offset their state income tax liability based on their share of the entity-level tax paid by the pass-through entity. The bill also allows a franchise tax credit for financial institutions that are pass-through entities. The bill has an effective date of May 11, 2023, and applies retroactively to tax years beginning on or after January 1, 2022.

Committee Categories

Budget and Finance

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Ways and Means (House)

Last Action

Fiscal note. (on 05/16/2023)

bill text


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