SB3111 Summary

• Creates a "Small Business Bonus Investment Credit" equal to 1% of Section 179 equipment expenses claimed as federal income tax deductions for tax years beginning January 1, 2018 or later.

• Allows taxpayers to carry forward unused credits for up to 5 years and permits sale, assignment, or transfer of the credit in accordance with Department rules.

• Caps total credits awarded statewide at $30,000,000 per calendar year; if claims exceed the cap, the Department reduces all credits pro rata by March 1 of the following year.

• Waives underpayment penalties and interest on additional taxes resulting from credit reductions if the taxpayer pays within 60 days of receiving notice of reduction.

• Effective immediately upon enactment; Department must adopt implementing rules by January 1, 2019.