On June 16, 2025, Illinois Governor J.B. Pritzker signed House Bill 2755 (âH.B. 2755â) into law, which includes comprehensive amnesty programs covering taxes administered by both the Illinois Department of Revenue (the âDepartmentâ) and the Office of the Secretary of State of Illinois (the âSecretary of Stateâ). The legislation also introduces a new amnesty program for remote retailers under the stateâs Remote Retailer Occupation Tax. Under each program, in exchange for payment of any outstanding…
On April 7, 2021, the New York Legislature passed the New York Budget Bill for fiscal year 2022 (S2509âC/A3009-C) (the âEnacted Budgetâ), ushering in a slew of tax increases for businesses and high-income earners. As of the time of publication of this post, New York Governor Andrew Cuomo had not yet signed the Enacted Budget, but has indicated that he will do so. The Enacted Budget is the result of a months-long negotiation process that…
On the heels of its loss in Matter of TransCanada Facility USA, Inc. DTA NO. 827332, on May 14, the New York State Department of Taxation and Finance proposed draft regulations addressing the Article 9-A Franchise Tax treatment of Qualified New York Manufacturers (âQNYMsâ).[1] These draft regulations, which are not currently in effect but which do shed light on the Departmentâs current thinking, amplify a position that the Department has taken in prior informal guidance and on audit regarding contract manufacturing arrangements and the scope of activities that constitute âmanufacturingâ that is not in the statute. The position that a taxpayer that engages in contract manufacturing cannot qualify as a QNYM is contrary to prior New York authorities addressing âmanufacturingâ in the investment tax credit context and contrary to judicial authorities defining âmanufacturingâ under relevant federal tax law. In addition, the draft regulations set out a new positionâagain, one not found in the statuteâthat âdigital manufacturingâ is not manufacturing, and that only manufacturing that results in the production of âtangibleâ goods will qualify for QNYM treatment.
The Texas Court of Appeals recently issued a decision that applied market-based sourcing for services, despite the stateâs statute that requires the sourcing of receipts to the location where the service is performed. In Hegar v. Sirius XM Radio Inc., No. 03-18-00573-CV (Tex. App. Austin, 2020), the court narrowly defined the scope of âperformanceâ as the final act that gets the service to the customer, thereby ignoring all of the costs that went into the performance and production of the service up to that point. Such an application produces a result that equates to market-based sourcing.