HB 2991 Summary

• Increases income tax rates for high-earning individuals starting 2010, with new brackets adding 10.55% rate on income over $200,000 and 13.55% rate on income over $400,000 for joint filers and single taxpayers.

• Eliminates corporate net operating loss carrybacks after December 31, 2010, and eliminates S corporation carrybacks after the same date to close corporate tax loopholes.

• Taxes capital gains as ordinary income under regular tax brackets after December 31, 2010, rather than at preferential rates.

• Creates a state tax structure, economic development, and funding for schools commission to oversee studies on school funding adequacy, tax equity and progressivity, and business tax incentives.

• Requires the department of education and department of taxation to conduct biennial studies on school funding adequacy and tax equity, with findings reported to the legislature.