H.B. 587: Income Tax Amendments

What the bill does

Did not pass both chambers; the bill was filed on March 6, 2026.

This bill modifies income tax provisions.

• Amends the corporate franchise and income tax rates
• Amends the individual income tax rate
• Creates an addition for domestic research and experimental expenditures that a taxpayer fully deducts on the federal tax return for a taxable year
• Authorizes a taxpayer that adds back domestic research and experimental expenditures to subtract those expenditures according to an amortization schedule on the state tax return

The description and list come from the bill's own long title as recorded by the Legislature. Read the official bill. The Ledger takes no position on it.

Subjects: Corporate Tax · Income Tax · State Tax Commission · Revenue and Taxation · Individual Income Tax

How it moved

1. February 19, 2026 · House1st reading (Introduced)Rules Committee
2. March 6, 2026 · Housefiledfile for bills not passed

Steps as the Legislature recorded them; clerical and fiscal-staff entries are left out. Numbers such as 54-14-7 are yeas, nays and absent.

Fiscal note

From the Legislative Fiscal Analyst's note on 2nd Sub. H.B. 587 (Gray), dated February 27, 2026. A fiscal note estimates direct costs and revenue; it is not an appropriation.

• State revenue: Enactment of this legislation could reduce Income Tax Fund revenue by an estimated $1,300,000 in FY 2026, $123,000,000 in FY 2027, and $101,000,000 in FY 2028, resulting from the lower income tax rate.
• State expenditures: Enactment of this legislation could cost the Tax Commission an estimated $3,900 one-time from the Income Tax Fund in FY 2027 to implement changes to the State's tax systems, forms, instructions, training and processes.
• Local government: Enactment of this legislation likely will not result in direct, measurable costs for local governments.
• Individuals and businesses: Enactment of this legislation could reduce income taxes for individuals and businesses by an estimated $1,300,000 in FY 2026, $123,000,000 in FY 2027, and $101,000,000 in FY 2028 in aggregate, resulting from the lower income tax rate; individual impacts will vary.

Bill overview

Sponsor: Steve Eliason

Senate floor sponsor: Daniel McCay

Legislature passed-list status: Not available in the saved metadata.

Passed-list membership is not a finding that a bill was signed or took effect. A bill absent from that list is not necessarily pending or defeated.

Latest recorded action

filed
Action date: March 6, 2026

The full step list is above. Find the bill in the official session list for status, hearings and committee records.

Recorded floor votes

No floor-vote records for this bill and session are available here. This does not mean no vote occurred; consult the official bill record.

Ledger coverage

No Ledger stories with an explicit source link to this bill and session are listed here.