Modifies provisions governing income exempt from earnings tax

HB 115 modifies tax exemption rules by updating which income types are excluded from the state's earnings tax. It adds specific exemptions, including income earned by low-income taxpayers (defined as individuals with income at or below 150% of the federal poverty level) and clarifies exemptions for organizations like mutual savings banks, nonprofits, religious groups, and certain insurance companies. Key provisions include exempting life insurance proceeds, workers' compensation payments, and income from public utilities operating under government contracts. The bill directly affects qualifying organizations, low-income earners, and individuals receiving specific benefit payments, reducing their taxable income under state law.