State increases tax exemption

House and Senate leaders have agreed to increase the state's corporate income tax exemption from $5,000 to $25,000, which is expected to cut in half the number of businesses that pay the state's corporate income tax. Roughly 30,000 businesses currently pay the tax.

The deal replaces a proposal by Gov. Rick Scott to gradually reduce the corporate tax rate to zero in seven years. According to House spokesperson Katie Betta, increasing the exemption is estimated to cost $30 million in the $68 billion budget agreed to by House and Senate leaders Tuesday morning.