Modifies eligibility for alternative business calculation adjustment under gross income tax.
This bill modifies the eligibility for the alternative business calculation adjustment under the gross income tax. It introduces income limits on the deduction, reducing the percentage of the business increment that can be subtracted from taxable income for taxpayers with gross income over $500,000. For taxable years beginning in 2026, taxpayers with gross income up to $500,000 can subtract 50 percent of the business increment, those with income over $500,000 but no more than $1,000,000 can subtract 25 percent, and those with income over $1,000,000 cannot subtract any percentage.
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