Budget & Taxes

The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the department of military and veterans affairs. The general fund and cash funds portions of the appropriation are increased and the federal funds portion is decreased.(Note: This summary applies to this bill as enacted.)

The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the offices of the governor, lieutenant governor, and state planning and budgeting. The general fund, cash funds, and federal funds portions of the appropriation are increased and the reappropriated funds portion is decreased.(Note: This summary applies to this bill as enacted.)

Compared to what was anticipated when appropriations were established in the 2025 regular legislative session for the 2025-26 budget year, the general assembly finds that for the 2025-26 budget year the actual funded pupil count and the at-risk pupil count are lower than anticipated; the local share of total program funding is higher than anticipated; and therefore, the general assembly intends to decrease the state share of districts' total program funding by $103,472,508 for the 2025-26 budget year.     Under current law, there are 2 total program formulas to finance public schools, commonly referred to as the old formula and the new formula. For the 2025-26 budget year, a district's total program is the greater of:The district's total program amount for the 2024-25 budget year; orThe amount calculated for the 2025-26 budget year under the old formula plus an amount equal to 15% of the difference between the amounts calculated between the old formula and the new formula.     The act clarifies that for the 2025-26 budget year, if the calculation under the new formula is less than the calculation under the old formula, then that district's total program for the 2025-26 budget year is the greater of:The district's total program amount for the 2024-25 budget year; orThe amount calculated for the 2025-26 budget year under the old formula.     The act reduces appropriations to the department of education for the 2025-26 budget year by $103,472,508.(Note: This summary applies to this bill as enacted.)

The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the department of state. The cash funds portion of the appropriation is increased.(Note: This summary applies to this bill as enacted.)

The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the department of education. The general fund portion of the appropriation is decreased, and the cash funds, reappropriated funds, and federal funds portions are increased.     Amends House Bill 25-1278, concerning modifications to the statewide education accountability system, to further appropriate the amount appropriated to the department to implement the act to the 2026-27 fiscal year.     Amends Senate Bill 25-214, concerning reimbursements for eligible meals provided through the healthy school meals for all program, to transfer the appropriation for the healthy school meals for all program from the cash funds to a fund created in the healthy school meals for all program statute. The amount for school meal reimbursements is increased.(Note: This summary applies to this bill as enacted.)

The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the judicial department. The general fund, cash funds, and reappropriated funds portions of the appropriation are increased.     The 2024 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the judicial department.(Note: This summary applies to this bill as enacted.)

The act exempts the sale, storage, use, or consumption of tangible personal property, commodities, or services sold by a destination management company from state sales and use taxation, beginning July 1, 2027. The exemption only applies if the destination management company has already paid the state the applicable sales or use tax on the property, commodities, or services upon acquisition.(Note: This summary applies to this bill as enacted.)

Under the fourth-year innovation pilot program (program), each year the general assembly appropriates an amount to the department of education (department) for the department to distribute to local education providers from which an eligible graduate graduated early. The act:Discontinues the requirement to appropriate money for distribution to eligible local education providers for eligible graduates who graduate during the 2025-26 school year; andRequires the department to prorate the amount distributed from the appropriation, if any.     Under the program, an eligible graduate may receive funding for tuition, fees, books, transportation, and other costs of attendance associated with their postsecondary program if, among other requirements, the eligible graduate commences their postsecondary program within 18 months after graduating early. The act requires an eligible graduate who graduates early in the 2025-26 school year to commence their postsecondary program by December 31, 2026.     Under current law, the department of higher education is required to submit a final program evaluation report, including the impacts and outcomes of the program on the student cohorts that participated in the program and recommended next steps for the program. The act repeals this requirement.     The act reduces an appropriation to the department of higher education for the 2025-26 budget year by $30,958.(Note: This summary applies to this bill as enacted.)

The act requires school districts and charter schools to adopt, implement, and post on their websites an achieving community commitment to equitable school success (ACCESS) policy, on or before July 1, 2027, that directs resources and supports toward at-risk students. The act describes what the required policy may include, such as partnerships with community organizations, wraparound services, after-school programs, and tutoring.     School districts and charter schools that are participating in a performance, improvement, priority improvement, or turnaround plan that directs resources and supports to at-risk students satisfies the ACCESS policy requirements and shall post the plan on the school or school district's website.(Note: This summary applies to this bill as enacted.)

The bill adjusts 3 2 existing tax expenditures.      Section 2 of the bill limits the alternative minimum tax credit to income tax years commencing prior to January 1, 2026; Section 4 3 requires a corporation, for purposes of determining their state taxable income for state income tax years commencing on or after January 1, 2027, to add to their federal taxable income the amount, if any, that the taxpayer claimed as a deduction on the taxpayer's federal tax return pursuant to the employee remuneration deduction allowed pursuant to section 162 (m) of the internal revenue code; and Section 5 4 limits the period of time that net operating losses generated in income tax years commencing on or after January 1, 2027, can be carried forward from 20 years to 10 years and limits the amount of losses that may be claimed to 70% rather than 80%.      Section 3 2 creates a new tax credit. The new tax credit allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised in sections 2, 4, 3 and 5 4 .(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)