Bradley partner Bruce Ely was quoted in Law360 Tax Authority on state-federal tax conformity. Business groups are urging states to decouple from several changes caused by the Tax Cuts and Jobs Act that take effect for 2022, and some states are moving to do so, at least from the provisions dealing with the limitation on the deduction of business interest expenses.
Ely told Law360 the business community in Alabama has been pushing for the bill to decouple from IRC section 163(j).
"With the automatic reduction in the interest cap effective Jan. 1, and with rising interest rates, we think a lot of companies that previously were only somewhat affected by the cap, if at all, may be hard hit," Ely said.
The original article, “3 Things To Know About State Tax Conformity Now,” appeared in Law360 Tax Authority on March 4, 2022 (login required).