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State corporate income tax update: What’s happened so far in 2017

Inside Deloitte

In this edition of Inside Deloitte, Shona Ponda, Elil Shunmugavel Arasu, Kathryn Jeffery, and Anna Uger of Deloitte Tax LLP, provide an overview of some state corporate income tax legislative changes that have been enacted during the 2017 state legislative sessions, as well as some related taxpayer considerations.


The state legislative process is often lengthy, intricate, and complicated, with competing interests and varying influences from multiple directions. The 2017 legislative season has been no exception—especially considering the uncertainty over and anticipation of federal tax reform,1 coupled with growing state budgetary pressures to fund such areas as health care, education, transportation, and infrastructure.

Continuing a trend seen last year, overall revenue growth among the states has been slow.2 As a result, numerous corporate income-tax-related bills were considered in the states, addressing a wide range of issues, including nexus; tax base; business income; apportionment and market-sourcing; filing methods, unitary combination, and water’s-edge elimination; tax havens; tax rates; and tax administration and amnesty. Some of the bills were enacted into law, while others were tabled for possible reconsideration next year.

In 2017 states have continued to pass legislation regarding the due dates of the corporate income tax returns in response to the passage of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015,3 which revised the due dates for the federal partnership and corporate income tax returns. That federal law, which was signed by President Obama July 31, 2015, had pressed state taxing authorities to clarify whether there was an effect on their tax return due dates.

With most state legislative sessions having ended for 2017, this article highlights, jurisdiction by jurisdiction, some of the corporate income tax legislative changes that have been enacted thus far.

Download the pdf to read the article in full.

​If you have questions regarding this edition of Inside Deloitte, please contact:

Shona Ponda, senior manager, Deloitte Tax LLP

Elil Shunmugavel Arasu, manager, Deloitte Tax LLP

Kathryn Jeffery, consultant, Deloitte Tax LLP

Anna Uger, consultant, Deloitte Tax LLP

The authors thank the respective Deloitte tax jurisdictional technical leads—members of Deloitte’s Washington National Tax Multistate and Multistate Tax Controversy Services practices who are designated, jurisdiction-specific tax technical and controversy specialists—for their contributions to this article.


1 See Mike Porter, et al. “State Conformity to Federal Provisions: Exploring the Variances,” State Tax Notes, July 10, 2017, p. 145, for more details on how states conform to the IRC.

2 See Valerie C. Dickerson, Scott Schiefelbein, and Kul Ahluwalia, “Potential State Tax Consequences of Federal Corporate Tax Reform,” State Tax Notes, June 19, 2017, p. 1145, for more details on the potential state tax consequences due to federal tax reform.

3 H.R. 3236, 114th Congress (2015-2016) (P.L. 114-41).

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