House Bill 1613 Summary

• Removes the scheduled phase-out of income tax on the first $5,000 of taxable income, keeping the 3% rate permanently in effect on this income tier instead of phasing it out from 2018-2022.

• Eliminates the deduction for federal self-employment taxes previously allowed to self-employed individuals, which was scheduled to increase from 17% to 34% to 50% through 2019 and beyond.

• Removes the scheduled phase-out of the corporation franchise tax rate, which was set to decline from $2.50 per $1,000 of capital to complete elimination by January 1, 2028, maintaining the $2.50 rate indefinitely.

• Repeals Section 5 of Chapter 499, Laws of 2016, which had authorized the complete repeal of the corporation franchise tax law effective January 1, 2028.