AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX

HB 8187 makes tax credits for pass-through entities refundable, meaning businesses structured as pass-through entities (like S-corps or LLCs) can receive cash refunds if their credits exceed their tax liability. This directly affects qualifying businesses that currently can only use credits to reduce their tax bill, not receive payments. The bill changes the mechanism under Section 44-11-2.3 by allowing unused credits to be paid as cash refunds instead of being carried forward. It does not alter tax rates or create new obligations, only modifying how existing credits are applied.