Bill
HF 3127
Overview: HF 3127, Expiration of the pass-through entity tax modified, Introduction and first reading, referred to Taxes, Introduced: April 07, 2025, Subject: TaxationPurpose and I
Overview: HF 3127, Expiration of the pass-through entity tax modified, Introduction and first reading, referred to Taxes, Introduced: April 07, 2025, Subject: Taxation
Purpose and Intent: The primary goal of this bill is to extend the expiration date of the state's pass-through entity tax, which allows certain businesses to pay taxes at the entity level rather than the individual level. The legislation aims to provide continued tax relief and simplification for small businesses and entrepreneurs operating in the state.
Key Provisions:
- Extends the expiration date of the pass-through entity tax from December 31, 2025, to December 31, 2030
- Maintains the current tax rate and structure for pass-through entities, including S corporations, partnerships, and limited liability companies
- Requires the state's Department of Revenue to conduct a study on the effectiveness and impact of the pass-through entity tax
Affected Parties and Impacts: This bill would primarily benefit small businesses and entrepreneurs operating in the state, as it would allow them to continue taking advantage of the pass-through entity tax and the associated tax savings. It could also have broader economic impacts by supporting the growth and development of small businesses in the state.
Procedural and Timeline Considerations: The bill has been introduced and referred to the Taxes committee for further consideration. The committee will review the proposal, hold public hearings, and make recommendations before the bill can proceed to a full legislative vote.
Compiled from official sources — confirm details with the bill’s official record.
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