Small business credit

From the 2024 DOR Tax Exemption Study

82.04.4451 - Small business credit Description Businesses whose B&O tax liability is below a certain threshold can claim a small business B&O tax credit against the amount of B&O tax otherwise due. The maximum monthly credit is: - $160 for businesses reporting at least 50% of their taxable activity under the: - Service and other activities. - Gambling contests of chance. - For-profit hospitals. - Scientific research and development B&O tax classifications. - $55 for all other businesses. Purpose To provide tax relief to small businesses. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $95.000 $98.900 $102.900 $107.400 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $53.000 $102.900 $107.400 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections for monthly filers and nine months of collections for quarterly filers in fiscal year 2025. Collections for annual filers begins in fiscal year 2026. - Growth rate mirrors