HB 2178 Summary

• Requires all laws that enact, modify, or extend tax expenditures to include an explanation of intent, expected economic and employment benefits, analysis of whether benefits outweigh costs, and a repeal date not exceeding 36 months.

• Mandates static revenue estimates for each fiscal year in the state financial plan for new tax expenditures, and for modified/extended expenditures requires three-year cost history and analysis of whether anticipated economic benefits have been realized.

• Defines "tax expenditure" as any credit, deduction, exclusion, exemption, or other tax benefit providing preferential tax rates or deferral of tax liability under Title 14, excluding federal conformity measures and constitutionally-required modifications.

• Allows public disclosure of claimant taxpayer identity and tax expenditure amounts for 14 specified economic development tax credits and exemptions (enterprise zones, renewable energy, film production, ship repair, research, agricultural land, aircraft leasing, and affordable housing).

• Takes effect January 1, 2050.