Repatriation, Expensing Proposals in Tax Reform Bills Could Affect States, Experts Say | McDermott Skip to main content

Repatriation, Expensing Proposals in Tax Reform Bills Could Affect States, Experts Say

Repatriation, Expensing Proposals in Tax Reform Bills Could Affect States, Experts Say

Overview


Stephen Kranz, Diann Smith, and Mark Nebergall wrote in a blog post cited here that the new tax bills would treat foreign earnings and profits of some U.S.-owned businesses as subpart F income, allowing a deduction for a percentage of the deemed repatriation. If approved, the authors wrote, the “deductions will also flow through to the states taxing such income, providing a reduced tax rate at the state level as well.”