The U.S. statesâ tireless attempts at diminishing protections afforded under Public Law 86-272 (âP.L. 86-272â) have been headlining the state tax press for the last several years. For example, we saw, among other developments: (1) the MTC publish its revised Statement of Information (âMTC Statement of Informationâ) outlining proposed protected and unprotected activities under P.L. 86-272, including certain activities conducted over the Internet; (2) states (including California, New Jersey and New York) publish guidance seeking…
On February 6, 2025, Rhode Island lawmakers heard testimony about Rhode Island Governor Daniel McKeeâs proposed Digital Advertising Gross Revenue Tax (âRI Ad Taxâ).  If enacted, the RI Ad Tax, which is included in Governor McKeeâs proposed 2026 budget released last month (HB 5076), would be the second of its kind in the U.S. after Marylandâs digital advertising tax. Marylandâs digital advertising tax has been embroiled in litigation since its enactment and we expect the…
Starting the new year off with legislation aimed directly at the pockets of corporate taxpayers, New York has issued a legislative proposal to nearly cut in half corporate taxpayersâ available GILTI exemptions, and at the same time almost double the top corporate franchise tax rate. Senate Bill 953 (âSB953â), pre-filed in the state senate on January 8, 2025, has the potential to significantly increase New York franchise tax exposure for corporations doing business in the…
The one-time IRC §965 income inclusion for untaxed foreign earnings generated by a controlled foreign corporation (âCFCâ) is not eligible for deduction from Nebraska taxable income as a âdeemed dividendâ according to a recent Nebraska Supreme Court decision, Precision Castparts Corp. v Nebraska Dept. of Revenue, 317 Neb. 481 (2024). Precision Castparts Corp. (âTaxpayerâ), an aerospace component manufacturer, sought a declaratory order from the Nebraska Department of Revenue (âDepartmentâ) authorizing the company to amend its…