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Multistate Tax  |  April 8, 2022
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Income/Franchise:
North Carolina DOR Summarizes Law Changes Including Corporate Income Tax Phase-Out, Franchise Tax Revisions

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Corporate Income, Franchise & Insurance Tax Bulletin, N.C. Dept. of Rev. (rev. 3/22). An updated North Carolina Department of Revenue (Department) bulletin summarizes and interprets some tax-related changes contained in state budget legislation enacted in 2021 [see S.B. 105 (2021) and previously issued Multistate Tax Alert for more details on some of these law changes], reflecting new state law that:

  • Updates North Carolina’s general income tax conformity provisions to the Internal Revenue Code (IRC), and decouples from provisions under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act (i.e., P.L. 116-136) involving limitations on the deduction of business interest expense under IRC section 163(j);
  • Phases out North Carolina’s corporate income tax; and
  • Simplifies the calculation of North Carolina’s corporate franchise tax.

According to the Department, the lengthy 157-page guidance is “prepared for the purpose of presenting the administrative interpretation and application of North Carolina corporate income, franchise, and insurance premiums tax laws at the time of publication” and supplements its administrative rules, but it does not supersede them. Please contact us with any questions.

 

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Art Tilley (Charlotte)

Managing Director

Deloitte Tax LLP

 

Joe Garrett (Birmingham)

Managing Director

Deloitte Tax LLP

 

John Paek (Atlanta)

Principal

Deloitte Tax LLP

 



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In this issue

Income/Franchise
District of Columbia Addresses Treatment of PTEs Paid to Other Jurisdictions

Idaho: New Law Seeks to Protect Some Idaho Businesses from Taxation by Other Jurisdictions

Idaho: New Law Extends Statute of Limitations for Income Tax Overpayment Credit Claims

North Carolina DOR Summarizes Law Changes Including Corporate Income Tax Phase-Out, Franchise Tax Revisions

Oregon: Amended Law Requires Estimated Payments on Elective PTE-E

South Carolina DOR May End COVID-19 Pandemic-Related Telecommuting Relief as of June 30

West Virginia: New Law Adopts Single Sales Factor, Market-Based Sourcing for Some Passthrough Income

Credits/Incentives
Maryland: New Law Creates Nonrefundable Income Tax Credit for Up to 50% of Federal WOTC

Indirect/Sales/Use
Florida: Rule Proposals Reflect New Remote Seller and Marketplace Laws and Rounding Algorithm

Maryland: Updated Guidance on Taxation of Digital Products Reflects Legislation from 2021

Washington Appellate Court Says Costs of Performance Sourcing Applies Under Prior B&O Tax Law

Other/Miscellaneous
Maryland Comptroller Posts Forms and Implementation Guidance on New Digital Advertising Tax

Multistate Tax Alerts



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