An Act establishing an income tax on certain entities in the state; and providing for an effective date.

HB 350 proposes a new 9.4% state income tax on businesses structured as sole proprietorships, partnerships, LLCs, or S-corporations (referred to as "qualified entities") with taxable income exceeding $25 million in a single year. The tax applies only to income above this threshold, calculated using federal C-corporation rules while disallowing most federal tax credits or deductions. It excludes businesses already taxed under other state provisions and takes effect for tax years beginning January 1, 2026. This bill would create a new tax obligation for large pass-through entities, distinct from existing corporate tax structures.