United States

Multistate: Updates to Q1 TWIST-Q Checklist and Conformity Article

Apr 02, 2018
From KPMG TaxWatch

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Since the March 21 release of our TWIST-Q checklist of developments occurring in the first quarter of 2018, there have been a few additional developments of note. Utah House Bill 293, which was signed into law on March 26, 2018, reduces the state’s corporate income tax rate from 5.0 percent to 4.95 percent for tax years beginning on or after January 1, 2018. House Bill 293 and Senate Bill 72 (signed March 27, 2018) also revise Utah’s rather complex apportionment rules and allow certain additional companies the ability to use phased-in single sales factor apportionment. On the conformity bill front, Florida House Bill 7093, signed March 23, 2018, updates the definition of Internal Revenue Code to mean the Internal Revenue Code of 1986 as amended and in effect on January 1, 2018. This update is effective retroactively to January 1, 2018. House Bill 7093 also includes a contingent corporate and financial institution rate reduction that is based on tax collections for FY 2018-2019 exceeding forecasted amounts. The actual amount of the rate reduction is currently unspecified, but will be determined by a formula included in the bill. Finally, Georgia Senate Bill 328 was signed into law on March 26, 2018. This bill provides that under Georgia law, income included in federal income under IRC section 951A (GILTI) is treated as Subpart F income for Georgia purposes. As such, it will be excluded under the state’s existing foreign dividends received deduction that applies to Subpart F income. Because an earlier conformity bill had clarified that the deduction allowed under IRC section 250 is allowed if the associated income is included in the Georgia tax base, taxpayers will continue to get the deduction for foreign-derived intangible income that is allowed under IRC section 250(a)(1)(A). Please stay tuned to TWIST for future legislative updates.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.