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Multistate Tax  |  June 28, 2024
State Tax Matters
State Tax Matters
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Multistate Tax Alerts

Throughout the week, we highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons. Read the recent alerts below or visit the archive. ad



California bill suspends net operating losses, limits certain tax credits, and clarifies apportionment

On June 13, 2024, the California legislature passed Senate Bill 167 (SB 167). If enacted, SB 167 provides for a three-year suspension of net operating losses (NOLs) under the California Personal Income Tax and Corporation Tax, a three-year cap on the use of business incentive tax credits to offset no more than $5 million of tax per year, and retroactive application of the Franchise Tax Board’s Legal Ruling 2006-1 issued on April 28, 2006, with respect to the treatment of apportionment factors attributable to income exempt from California Corporation Tax Law.

 

This Multistate Tax Alert summarizes some of the relevant provisions in SB 167.
[Issued: June 24, 2024] More



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In this issue

Federal: US Supreme Court Affirms Ninth Circuit’s Decision Upholding Constitutionality of Transition Tax Arkansas: New Law Provides Another Corporate Income Tax Rate Reduction by Lowering Top Rate to 4.3% Arkansas: Utilization of Credits Treated Similarly to NOLs on State Returns Filed After Federal Adjustments Hawaii: New Law Updates State Conformity to Internal Revenue Code Hawaii: New Law Revises Some Pass-Through Entity-Level Tax Provisions Including Tax Rate Kansas: New Law Lowers Tax Rates for Some Banks and Financial Institutions Michigan Appellate Court Reverses Lower Court to Hold that Insurance Affiliate Must File as Part of Combined Return Minnesota: Multinational Company Must Use Alternative Apportionment to Account for Foreign Currency Hedging Montana DOR Adopts Rule Changes Reflecting Elimination of Tax Haven Jurisdictions List Oregon: State High Court Affirms that Company’s In-State Activities Exceed P.L. 86-272 Protections Rhode Island: New Bank Tax Law Permits Single Sales Factor Election, Includes Intercompany Expense Addback, and Requires Combined Reporting Information Report South Carolina ALJ Says Bank’s Various Income Streams Must be Sourced Based on Borrower Location and Gain from Stock Sale is Apportionable


Arizona: New Law Postpones Date to Establish Certification Process for Third-Party Providers that Determine TPP Transaction Sourcing Michigan Appellate Court Affirms that Use Tax is Due on In-State Company’s Direct Mail Advertising South Carolina High Court Says Durable Medical Equipment Exemption is Unconstitutionally Discriminatory


Oregon Tax Court Magistrate Rejects “Dark Store Theory” Valuation of Big-Box Retail Store


California bill suspends net operating losses, limits certain tax credits, and clarifies apportionment




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