House taxation panel advances amended Senate tax package, restores 1% pay increase and extends select credits

The House Taxation and Revenue Committee voted to advance an amended Senate substitute for Senate Bill 151 on a 7–5 committee vote after a daylong hearing of testimony and debate.

The amended substitute, as presented by the committee sponsors, uses the House’s share of revenue capacity to restore a 1% salary increase for state employees (scheduled to take effect in fiscal 2027), extends the high-wage jobs tax credit and includes targeted tax provisions intended to support physicians, affordable multifamily housing and local news organizations. The amendment also removes a gross receipts tax (GRT) deduction for certain medical equipment that had been in the Senate package and adds sunsets and compliance requirements to several sections.

Why it matters: committee sponsors said the changes are designed to create revenue capacity by decoupling from recent federal corporate tax changes and to direct those funds to a mix of workforce compensation, housing, economic development and local journalism supports. "We have approximately $55,000,000 in capacity in the senate side and, another 55,000,000 for you all here on the house side," the sponsor told the committee while outlining the package.…