H 356 - Tax Reduction Act of 2017

• Increases standard deduction amounts for all filing statuses effective January 1, 2018: married filing jointly from $17,500 to $18,500; head of household from $14,000 to $14,800; single from $8,750 to $9,250; married filing separately from $8,750 to $9,250.

• Repeals Article 5F privilege tax on mill machinery effective July 1, 2017, and replaces it with a sales and use tax exemption for mill machinery and parts sold to manufacturers, contractors, and subcontractors performing manufacturing contracts.

• Adds multiple new sales and use tax exemptions for specific industries effective July 1, 2017: recycling facilities, research and development companies, software publishers, metal fabricators, ports facilities, and ready-mix concrete companies.

• Simplifies franchise tax calculation for corporations effective January 1, 2019, by eliminating the requirement to calculate appraised property value and total actual investment in tangible property; tax is now based solely on net worth at rate of $1.50 per $1,000 with minimum $200 tax.

• Directs Revenue Laws Study Committee to study and clarify the mill machinery exemption by examining eligible businesses, qualifying activities, and equipment types to report findings to the 2018 legislative session.