Establishes notice requirements of tax credit denials before penalties are issued

HB 1771 requires tax authorities to notify taxpayers before imposing penalties for denied tax credits, giving them 60 days to pay the balance or arrange payment without penalties. It specifically applies to taxpayers who qualified for a credit but were denied due to funding limits (like exhausted annual appropriations), not due to personal eligibility issues. If taxpayers fail to pay within the 60-day window or miss payment arrangements, penalties apply as if the bill didn’t exist. The law takes effect for tax years beginning August 28, 2026.