SB 449 Creates a phased in personal income deduction for business income
Sponsor: Romine
LR Number: 1948S.01I Fiscal Note available
Committee: Ways and Means
Last Action: 3/28/2013 - Hearing Conducted S Ways and Means Committee Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2013

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Current Bill Summary

SB 449 - The act creates an individual income tax deduction for business income and phases it in over a five-year period. Taxpayers will be allowed to deduct ten percent of business income for the 2014 tax year and, once fully phased-in, will be allowed a fifty percent deduction for all tax years after the 2017 tax year. Shareholders of S corporations and partners in partnerships will be allowed a proportional deduction based their share of ownership. "Business income" is defined in the act, including a provision that the term shall not include amounts that have not been withdrawn from the business entity for distribution to persons holding an ownership interest in such business entity.

This act is similar to a provision in SS/SCS/SBs 26, 11 & 31 (2013).