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, must have operated their business for at least two consecutive years, and must demonstrate a 30% decline in gross revenue due to the disaster. The credit amount is set at $5,000, and taxpayers must apply for certification from the economic development department to claim the credit. The bill also outlines specific provisions for married individuals filing separately and for business entities taxed as partnerships or limited liability companies.

The credit must be claimed within one year of receiving certification, and any excess credit beyond the taxpayer's income tax liability will be refunded. The bill mandates that the economic development department provide certificates of eligibility in an electronic format and includes the credit in the tax expenditure budget. The provisions of this act will take effect for taxable years beginning on or after January 1, 2025.