S322 Summary: 2021 Revenue Laws Changes

• Updates Internal Revenue Code reference from May 1, 2020 to April 1, 2021, and modifies state tax deductions and decoupling adjustments related to federal tax law changes including CARES Act and American Rescue Plan provisions.

• Allows S corporations and partnerships to elect to pay income tax at the entity level (creating "taxed pass-through entities") to reduce impact of federal state and local tax (SALT) deduction cap on shareholders and partners.

• Modifies excise taxes: caps premium cigar tax at 30 cents, graduates late payment penalties from 2% to maximum 10%, limits surety bond gross premiums tax, and applies general sales tax rate to peer-to-peer vehicle sharing short-term rentals.

• Extends deadlines for mill rehabilitation tax credit projects to July 1, 2024 and creates separate state net operating loss calculation for individual income tax with 15-year carryforward period.

• Makes various technical and administrative changes to tax administration including updated license revocation procedures, shipping document requirements for motor fuel, and refinement of cigarette/tobacco product regulations.