HI HB1620

Reduces the pass-through entity level tax rate from 11% (highest individual income tax rate) to 9% for entities electing to pay income taxes at the entity level under Act 50.

Excludes distributive shares and guaranteed payments of corporations, S corporations, partnerships, tax-exempt entities, and other taxpayers designated by the department from the entity-level tax calculation.

Allows net losses incurred by electing pass-through entities to be carried forward to subsequent tax years until exhausted, rather than being limited to the current year.

Permits excess tax credits that exceed a member's tax liability to be carried forward as a credit against future years' income tax liability, rather than being nonrefundable and expiring.

Effective July 1, 3000, and applies to taxable years beginning after December 31, 2023.