HCS/HB 76 - This act caps corporate franchise tax liabilities at the amount of each corporation's tax liability for the 2010 tax year. If a corporation did have a corporate franchise tax liability in 2010 because such corporation was not doing business within the state or did not exist, such corporation's franchise tax liability will be capped at the amount of such corporation's franchise tax liability for its first full-year of existence. Beginning January 1, 2012, the corporate franchise tax rate will be gradually reduced over a five year period until it is completely phased-out. Effective January 1, 2016, no corporate franchise tax will be imposed. Under current law, banking institutions are allowed to use bank tax credits against their bank tax liability and any remaining credits may be used to offset corporate income tax liability. Limited liability companies and limited liability partnerships will be able to use bank tax credits against their bank tax liability and any remaining tax credits may be used to offset corporate income taxes on all returns filed on or after January 1, 2012. This act is similar to the perfected version of the Senate Committee Substitute for Senate Bill 19 (2011). JASON ZAMKUS
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