SB 1277: Taxation: Personal Income Tax Law: cost-of-living refundable tax credit.

The bill aims to introduce a cost-of-living refundable tax credit to help taxpayers. This credit will be available to qualified taxpayers starting from January 1, 2027, and will be calculated based on the taxpayer's filing and residence status. The credit will be refundable, meaning any amount exceeding the taxpayer's liability will be credited against other amounts due and refunded to the taxpayer. Additionally, the bill provides an exclusion from gross income for amounts received as a refund under this credit. The credit will be funded by increasing payments from the tax relief and refund account, a continuously appropriated fund.