The proposed bill establishes a new Small Business Disaster Relief Income Tax Credit for taxpayers who own small businesses located in areas declared as disaster zones by the governor. Eligible taxpayers must not be dependents of another individual, have operated their business for at least two consecutive years, demonstrate a 30% decline in gross revenue due to the disaster, and have annual gross revenue of less than $2 million. The credit amount is set at $5,000, and taxpayers must apply for certification of eligibility through the economic development department, which will issue a certificate detailing the credit amount and applicable taxable years.

Additionally, the bill outlines specific provisions for married individuals filing separately, allowing them to claim half of the credit they would have received if filing jointly. It also permits allocation of the credit among partners in a business entity taxed as a partnership or limited liability company, provided the entity meets the eligibility requirements. The credit must be claimed within one year of certification, and any excess credit beyond the taxpayer's income tax liability will be refunded. The provisions of this act will apply to taxable years beginning on or after January 1, 2025.