A Guide to US States’ Responses To Tax Reform

Stephen Bertonaschi

WASHINGTON, DC–As businesses across the country evaluate the impact of federal tax reform on their operations, state legislators are making similar evaluations. States have made a habit in the past of decoupling from aggressive deductions allowed for federal income tax purposes, and while federal tax reform has been viewed as a positive for businesses, it largely remains to be seen the full impact from a state perspective.

The Tax Cuts and Jobs Act (“TCJA”) is major tax legislation for businesses that included accelerated expensing (100%) for tangible property, repeal of corporate alternative minimum tax, potential limitation on business interest deductions, and limitation on net operating losses, just to name a few of the changes.