Bill Summary: HB 2961 (Taxation; Omnibus; 2025-2026)

• Amends transaction privilege tax provisions to add "wastewater" to the list of substances that can be transported through large pipes exempt from tax, and extends the forest products equipment exemption deadline from December 31, 2024 through December 31, 2028.

• Revises property tax exemptions for disabled veterans and low-income individuals by creating tiered exemption amounts based on disability rating percentage, with full exemptions for 100% service-connected disabilities and partial exemptions for lower ratings, capped at $4,188.

• Increases the maximum exempt personal property limit for agricultural and business property from $207,366 to $500,000 of full cash value per taxpayer.

• Expands the adoption expense income tax subtraction from $3,000 to $5,000 (single/head of household) or $10,000 (married filing jointly) for taxable years beginning after December 31, 2025.

• Extends the public school fee and contribution tax credit program through June 30, 2029 (previously set to expire June 30, 2024), allowing credits for capital items, school meal programs, and consumable health care supplies.