Budget & Taxes (Tax Incentives)

HB 585 creates a property tax exemption for religious organizations that rent out specific properties. It allows one rental church parsonage (residential) and one rental worship building (e.g., church, synagogue, mosque) to be exempt from property taxes, provided the rental income is used solely for the religious leader’s compensation, building maintenance, or standard religious programs. The exemption applies only to single houses of worship (like churches or synagogues) and limits each organization to one exemption per property type. This change takes effect for tax periods ending after December 31, 2024.

HB 1646 creates a tax credit allowing businesses to reduce their state business profits tax by the value of off-site infrastructure they fund or build that directly benefits the public, after obtaining municipal approval. The credit is limited to a business's annual tax liability, with unused portions carryable forward for up to 20 years. Businesses must document these improvements, and the Department of Revenue Administration will develop rules for verification and calculation. The credit takes effect April 1, 2027.