GOP Tax Plans a Plus, Minus for Conforming States - McDermott Will & Emery

GOP Tax Plans a Plus, Minus for Conforming States

Overview


Stephen Kranz, Diann Smith and Mark Nebergall wrote a blog post cited in this article, which suggested that expensing provisions in the new tax bill “would have a dramatic reduction in taxable income for many capital intensive companies,” thus reducing state tax income. If states try to address this reduction, the authors wrote, it could mean “additional complexity by giving rise to differences in adjustments to basis for state and federal purposes.”