Senate Bill 3032 Summary

• Removes the scheduled phase-out of income tax on the first $5,000 of taxable income, maintaining the 3% rate on this bracket instead of eliminating it by 2022.

• Eliminates the deduction for self-employed individuals of a portion of federal self-employment taxes (which was scheduled to increase from 17% to 34% to 50% between 2017-2019).

• Removes the scheduled phase-out of the corporation franchise tax rate, keeping it at $2.50 per $1,000 of capital value instead of reducing it to $0.25 by 2028.

• Repeals Section 5 of Chapter 499 (Laws of 2016) that would have eliminated the corporation franchise tax entirely after January 1, 2028.