SCS/SB 590 - This act phases-out the annual franchise tax rates and the outstanding shares and surplus threshold amounts for corporations over a period of five years beginning tax year 2008. For tax years 2008 through 2011, the outstanding shares and surplus threshold is increased from one to ten million dollars for corporations which offer health insurance to all full-time employees and pay at least half of such premiums. Any corporation which offers health insurance to all full-time employees must state that fact in the form of an affidavit provided with the annual report form prescribed by the director of revenue.
For tax years 2009 through 2012 the annual franchise tax rate is gradually phased out such that in 2012, the tax rate is zero. The act also modifies the tax credit allowed for banking institutions to compensate for the phase-out of the franchise tax.
This act is similar to House Bill 1619 (2006).