HB 2821 Summary: Universal Regulatory Tax Credit

• Allows taxpayers to claim a credit against state and local taxes for costs and expenses incurred as a direct result of "excessive regulation," defined as regulations that do not protect health/safety, serve primarily aesthetic purposes, or restrict ordinarily harmless conditions or actions.

• Credit amount equals total creditable costs and expenses incurred in the taxable period, but cannot exceed 10% of the taxpayer's aggregate tax liability to the governmental entity imposing the regulation, with unused credits carrying forward up to 10 subsequent taxable periods.

• Taxpayers must submit a single universal claim form to the taxing agency on or before the tax payment due date, identifying each excessive regulation, the responsible taxing entity, and the amount of costs/expenses attributable to each regulation.

• Allows transferability of unclaimed credit amounts through a one-time sale or transfer, with a $200 processing fee and written notice to the state treasurer required within 30 days; transferees cannot subsequently resell the credit.

• Establishes that taxing entities responsible for excessive regulations cannot use debt financing or impose new/increased taxes to offset credit impacts, and if credits would threaten essential government services, the underlying regulations become void and cannot be replaced.