HB 2775 Summary

• Establishes joint legislative tax expenditure review committee with expanded authority to review transaction privilege and use tax expenditures under a ten-year review schedule, in addition to existing income tax credit reviews.

• Requires the committee to evaluate tax expenditures using consistent standards including original purpose, revenue impact, economic benefits (jobs created, wages), and administrative complexity, with findings reported by December 15 of each review year.

• Defines "tax expenditure" as any provision exempting persons, income, goods, services or property from established taxes, including deductions, exclusions, exemptions, allowances and credits.

• Changes income tax credit review schedule from biennial (years ending in 0-9) to annual reviews distributed across calendar years 1-10, staggering reviews of individual and corporate income tax credits.

• Requires new income tax credits enacted by the legislature to include a specific review year (fifth full calendar year after enactment) and a purpose clause explaining rationale, expected job creation, and median wage information for job classifications created.