HB419 - Financial Institution Excise Tax Reform Act of 2019

• Establishes estimated quarterly tax payment system for financial institutions patterned after federal requirements, transitioning from post-payment system with penalties and interest waived for first two tax years.

• Modifies tax distribution to counties and municipalities from annual to quarterly basis: 50% to general fund, 33.3% to municipalities, 16.7% to counties, with transition period from 2019-2023 gradually shifting municipal distributions from historical formula to population-based formula.

• Extends net operating loss carryforward period to 15 years for losses incurred after December 31, 2019, while eliminating carryback to prior two years; allows deduction of federal income taxes and adds various federal tax adjustments.

• Adds clarifications regarding depreciation deduction conformity with federal tax purposes and expressly rejects certain Tax Cuts and Jobs Act provisions (FDIC premium limitations, interest deduction limitations, and global intangible low-taxed income inclusions).

• Effective January 1, 2020, with full operation for tax years beginning after December 31, 2019.