HB 1001 Summary

• Reduces individual income tax rates beginning January 1, 2022, with top marginal rate declining from 5.9% to 4.9% by 2025 if reserve fund conditions are met, with progressive reductions contingent on Catastrophic Reserve Fund transfers.

• Reduces corporate income tax rates beginning January 1, 2023, with the top rate declining from 5.7% to 5.3% by 2025, subject to the same reserve fund transfer conditions as individual rates.

• Renames the "Long Term Reserve Fund" to "Long Term Catastrophic Reserve Fund" and requires annual replenishment of up to 50% of General Revenue Allotment Reserve Fund balance.

• Indexes the standard deduction annually to the Consumer Price Index (capped at 3% annual increase), rounded to nearest $10.

• Creates new income tax credit of $60 for individuals earning up to $24,700, phasing out above that threshold.