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Committee advances HB163 to decouple R&D tax rule; amendment makes provision effective immediately
Summary
House Bill 163, described as a decoupling measure related to research and development tax treatment, was amended to make its effective date immediate and reported favorably; the sponsor said the change could increase the positive fiscal note to about $7.2 million for the state.
A Senate committee amended and advanced House Bill 163, a measure described by its presenter as a decoupling from a federal tax provision tied to research and development and linked to a positive state fiscal note.
The presenter said the change relates to the federal Tax Cuts and Jobs Act and that the state decoupling on research and development would yield a positive fiscal note of roughly $7,200,000 and reduce the federal tax paid by filers. An amendment to make the act effective immediately upon signing — retroactive to 2024 filings — was offered, seconded and adopted in committee. Committee members asked whether the immediate effective date would affect state revenue; the presenter said it would not reduce state revenue and would allow taxpayers to amend 2024 returns where they purchased equipment for R&D purposes.
After brief questions, the committee voted 13-0 to give HB163 a favorable report. The transcript does not include an enacted law or floor action; the committee action advances the bill to the next legislative stage.
