Joint committee reviews SB 120 dash‑1 omnibus of tax‑expenditure extensions and credit changes

The joint committee on tax expenditures met June 4 for an informational review of the dash‑1 amendment to Senate Bill 120, an omnibus measure that would extend multiple tax credits and subtractions and adjust several program caps and credit values. Kyle Leeson of the Legislative Revenue Office presented the amendment and an accompanying table of sections and estimated revenue impacts.

Leeson told the committee that the dash‑1 amendment would extend four credits currently undergoing sunset review by six years, including the earned income tax credit, the pension income tax credit and the manufactured‑dwelling‑park owner credit. "This is the omnibus measure," Leeson said, describing the dash‑1 as a package that aligns with revenue‑impact statements for related bills. He said the crop‑donation tax credit in the package would be expanded: "under current law, the credit value is 15% of the wholesale value of the crop donated; the change here would be to increase that to 25%." Several other changes presented by Leeson include: - A six‑year extension of the earned income tax credit (no other policy changes noted in the presentation). - A six‑year extension and an increase in the crop‑donation tax‑credit rate from 15% to 25%. - A six‑year extension of the pension income tax credit and the manufacturer dwelling park closure credit (no other policy changes noted for those credits). - A tax subtraction extending an existing capital‑gains exemption when owners of manufactured dwelling parks sell to park tenants, a nonprofit or a housing authority (presented as a six‑year extension). - A modest expansion of the affordable‑housing lender tax credit (presented as coming from House Bill 3236 A), including eligibility for certain preservation properties and qualified mortgage loan funds beginning in tax year 2026. - An increase in the volunteer emergency medical services provider tax credit from $250 to $1,000 and a two‑year extension of its sunset (cited as from House Bill 3380). - An increase in the annual cap for the Individual Development Account (IDA) donation tax credit from $7,500,000 to $14,000,000 (an increase of $6,500,000), applying to tax years 2025 forward. - An increase of $6,500,000 in the annual auctionable film and video tax credit pool, applying to tax years 2025 forward.

Leeson grouped the items that affect the general fund and reported a subtotal estimated reduction of about $78,700,000 from the extensions and policy changes presented. He also noted other items that are not general‑fund related, including an exclusion from the weight‑mile tax for vehicles used in emissions testing that is on the tax‑expenditure list and that the governor recommended extending.

Committee members asked clarifying questions and offered remarks. Representative Represchke commented on the number of House bills versus Senate bills included in the package, saying, "I see that there are 1, 2, 3, 4, 5, 6, 7 House bills and only 1, 2, 4 Senate bills. I'm just wondering what the Senate does over there because, we seem to be doing almost twice the work." A staff member present noted that some bills were still being processed in the revenue committee and that additional proposals would be referred to the joint committee for consideration.

On manufactured‑dwelling parks, a committee member described local efforts to form resident cooperatives and urged incentives to help park owners sell to current residents; a staff speaker said the barrier in practice has been that residents often cannot compete financially with other buyers even when incentives exist and that currently about 28 parks in the state are resident‑ or nonprofit‑owned out of roughly one thousand parks.

No motions or formal committee actions were taken at the informational meeting. Committee leaders invited input from stakeholders and noted they must weigh the package against the legislature’s budget constraints.

The committee closed the informational meeting without a vote and did not set a follow‑up date during the session record presented.