Senate Bill 338 Summary

• Modifies corporate income tax apportionment for taxable years beginning January 1, 2016 by using only the sales factor instead of the three-factor method (property, payroll, and sales).

• Reduces the corporate income tax rate from 5% to 4% for taxable years beginning January 1, 2016, and further reduces it to 3% for taxable years beginning January 1, 2017.

• Expands the Job Development Investment Grant (JDIG) program by creating new categories including "high-yield projects" (requiring $1 billion investment and 2,500 jobs) with up to $30 million annual liability and enhanced grant percentages up to 100% of withholdings for 20 years.

• Increases minimum job creation requirements and introduces wage standards for different development tier areas, ranging from 100% to 125% of county average wages depending on area designation.

• Extends the JDIG program authority to award new grants from January 1, 2016 to January 1, 2018.