New York State Budget Adopts Substantial Changes in Response to Federal TCJA
Posted on Apr 2, 2018 in State and Local Tax
The New York Legislature passed its 2018-2019 Fiscal Year budget on March 30, 2018, which is expected to be signed into law by Governor Cuomo. The Legislature responded to the Tax Cuts and Jobs Act (TCJA) passed by the United States Congress late last year by excluding IRC § 965 repatriated income from New York taxable income. However, the final budget failed to address other TCJA...
Videocast: State Tax Implications of Federal Tax Reform
Posted on Mar 28, 2018 in State and Local Tax
The state and local tax (SALT) implications of federal tax reform are numerous, yet still often unclear. With states releasing new law and guidance about federal tax reform, taxpayers must stay abreast of this very dynamic area of law. In this videocast, Todd Lard and Todd Betor discuss the gating question to the SALT implications of federal tax reform—state conformity to the IRC—along...
Georgia passes legislation to provide deduction of GILTI from the state tax base
Posted on Mar 22, 2018 in International Tax, State and Local Tax
On March 21, 2018, the Georgia Legislature passed SB 328 (the Bill) to exclude IRC § 951A (GILTI ) from Georgia taxable income. The Bill treats GILTI as Subpart F income for purposes of the deduction under OCGA § 48-7-21(b)(8). View the full Legal Alert.
Idaho Enacts Corporate Income Tax Changes to Take Advantage of the Federal Tax Reform Legislation
Posted on Mar 16, 2018 in State and Local Tax
On March 12, 2018, Idaho’s governor signed into law H.B. 463 (the Bill), which provides a series of changes to Idaho’s income tax law in response to H.R. 1, popularly referred to as the Federal Tax Cuts and Jobs Act (the Act). The main changes to Idaho tax law include: (i) conformity, for tax years beginning after January 1, 2018, to the IRC as of January 1, 2018; and (ii) the...
Waiting for the Other Shoe to Drop: State and Local Tax Implications of Federal Tax Reform – International Tax Provisions
Posted on Mar 14, 2018 in International Tax, State and Local Tax
The state and local tax (SALT) impact of the recently enacted federal tax reform is still being assessed. Because of states’ broad conformity to the federal income tax laws, many of these changes will have an impact on taxpayers’ SALT liabilities. In their article for Bloomberg Tax, Eversheds Sutherland attorneys Jeff Friedman, Todd Betor and Michael Spencer focus on the SALT...
How Will Georgia Conform to Federal Tax Reform? Annual Legislation Introduced
Posted on Feb 5, 2018 in State and Local Tax
The Georgia Legislature has introduced its annual Internal Revenue Code (IRC) conformity bill—HB 821. Georgia conformity is typically updated annually to apply for the most recent tax year. In light of the recently enacted federal tax reform, this year’s conformity bill will receive particular attention because of what tax reform provisions Georgia chooses to adopt and not to adopt....
Many State Tax Incentives Are Now Taxable Due to Federal Tax Reform
Posted on Jan 16, 2018 in State and Local Tax
Recently enacted federal tax reform is expected to generate $6.5 billion in additional federal revenue through 2027 by increasing corporate tax liability for certain state and local incentives. In their article for Bloomberg, Eversheds Sutherland attorneys Timothy Gustafson and Hanish Patel discuss the change and opportunities to minimize its impact. View the full...
California Proposes Bill to Permit Donations Instead of State Taxes as Challenge to New Federal Tax Bill
Posted on Jan 5, 2018 in News, State and Local Tax
The California legislature has introduced a bill that permits residents to donate to a state “public purpose” fund and receive a dollar-for-dollar tax credit on their returns. This donation is intended to be deductible for federal tax purposes as a means of circumventing the new $10,000 cap on state/local tax deductions included in the recently passed tax bill. White House economic...
New York Challenges Federal Government’s Tax Reform Bill as Unconstitutional Double Taxation
Posted on Jan 3, 2018 in News, State and Local Tax
In his recent speech before the state legislature, New York Governor Andrew M. Cuomo stated that the reduction in the state and local tax deduction reflected in the new tax reform bill is unconstitutional double taxation. The governor further indicated that New York would challenge the provision. Cuomo also said that the state will undergo its own tax revision process, shifting away...
With a Consensus Tax Bill, Christmas May Come Early for Republicans
An agreement between Senate and House Republicans on a tax bill was finalized Wednesday morning. According to lawmakers and reports from aides, Senate and House Republicans have agreed to provisions including the following: • Corporate tax rate will drop from 35% to 21%, to go in effect in 2018. • Individuals will be allowed to deduct up to $10,000 in state and local taxes, split...Conference Committee Working to Resolve House and Senate Differences
Posted on Dec 12, 2017 in News, State and Local Tax
Conference Committee negotiators in the House and Senate over the weekend did not reach a compromise on the different versions of the Tax Cuts and Jobs Act. The main issues include the timing of the 20% corporate rate cut and whether to allow deductions for state and local taxes. Currently, Congressional Republicans hope to finalize the bill by December 20th, and Kevin Brady, Chair of...
Legal Alert: The State and Local Tax Implications of Federal Tax Reform
View the Eversheds Sutherland Legal Alert discussing state and local tax issues under H.R. 1 here.Senate Will Not Release Bill Until House Finishes Markup
The House Ways and Means Committee continues the markup process that began on Monday. No new amendments were agreed to in yesterday’s markup session but the state and local tax deduction and pass-through entities remain key issues in the debate concerning the legislation. The House’s negotiation process has important implications for the Senate timeline as the Senate bill will not...Senate Bill Anticipated Later This Week; House Begins Markup of Their Tax Reform Legislation
Posted on Nov 6, 2017 in News, State and Local Tax
The House Ways and Means Committee began marking up the GOP tax bill this afternoon, and the process is expected to continue until Thursday. The markup will start with opening statements and then amendments are expected to be introduced throughout the week by Chairman Kevin Brady. With the floor open to Democrats, discussions and amendments are anticipated to focus on the...
Even with Concession on Property Tax Deductions, Tax Bill Aimed for Wednesday Release Faces Early Opposition
Posted on Oct 30, 2017 in News, State and Local Tax
Kevin Brady, Chairman of the House Ways and Means Committee, announced that the House’s tax plan will allow individuals to deduct their state and local property taxes from their federal returns, “to help taxpayers with local tax burdens,” although not their state and local income or sales taxes. However, the National Association of Home Builders has already voiced its opposition to the...