Bill > HB2429

This bill requires the Department of Business, Economic Development, and Tourism (DBEDT), in partnership with the Department of Taxation, to annually study the effectiveness of tax expenditures, which are essentially tax breaks like credits and exemptions that reduce the amount of tax owed, and to prepare reports with descriptive statistics on their performance. To facilitate this evaluation, DBEDT will develop new tax forms and schedules to gather necessary information, and DBEDT staff will be allowed to access certain tax return information, which is typically kept confidential, to conduct these studies. This initiative aims to ensure that tax expenditures are efficiently achieving their intended purposes and to provide better data for legislative oversight and decision-making regarding tax policy, with these changes taking effect for taxable years beginning after December 31, 2026.