HEA 1142 Summary

• Transfers responsibility for reviewing and evaluating all state tax incentives from the commission on state tax and financing policy to the legislative services agency, with reports due before October 1 each year.

• Requires the legislative services agency to conduct systematic reviews of tax incentives including analysis of cost-benefit, economic impact, job creation, and alignment with original legislative purposes, with each incentive reviewed at least once every five years.

• Directs the interim study committee on fiscal policy to hold annual public hearings after September 30 and before November 1 to receive presentations on tax incentive reviews and submit recommendations to the legislative council.

• Establishes a new tax expenditure report requirement, with the legislative services agency publishing biennial reports before November 1 of even-numbered years listing and explaining all tax expenditures and estimated costs.

• Repeals two residential tax deductions effective January 1, 2016: deductions for home insulation and weather-stripping improvements (capped at $1,000) and deductions for solar-powered roof vents or fans (capped at $1,000).