Colorado
Apprenticeship Tax Credit
Colorado Governor Jared Polis has signed legislation creating a refundable apprenticeship tax credit, available to qualified taxpayers in a new and emerging industry for each apprentice who is an employee of the taxpayer in Colorado for no less than six months during the taxpayer's income tax year.
TABOR Refunds
The Taxpayer's Bill of Rights (TABOR) Amendment was approved by voters in 1992. This amendment to the Constitution of the State of Colorado generally limits the amount of revenue governments in the state can retain and spend. Absent voter approval, it requires excess revenue to be refunded to taxpayers. TABOR also requires voter approval for certain tax increases. The state TABOR revenue limit is generally equal to the prior fiscal year's limit plus the rate of inflation and population growth in Colorado, subject to a voter-approved floor.
New legislation changes how TABOR refunds will be distributed from fiscal year 2024-25 to fiscal year 2034-35. The legislation also incorporates a temporary reduction in the state’s individual income tax rate. Details can be found by clicking here.
Iowa
Iowa’s transition to a flat income tax has been expedited by recent legislation signed May 1. For tax years beginning on or after January 1, 2025, the flat individual tax rate will be 3.8% instead of the 3.9% originally scheduled for 2026.
North Carolina
Effective for taxable years beginning on or after January 1, 2022, the filing date for which a partnership may elect to be taxed at the entity level for the SALT cap workaround by filing an amended return has been extended from October 15, 2023, to July 1, 2024.
For taxable years beginning on or after January 1, 2025, the franchise tax rate for a C corporation and a holding company is $1.50 per $1,000 of its tax base with a maximum of $500 for the first $1 million of the corporation's tax base. This also applies for the calculation of 2024 and later corporate tax returns.
South Carolina
South Carolina has updated its conformity to the Internal Revenue Code (IRC) as amended through December 31, 2023.
Tennessee
On May 10, 2024, Governor Bill Lee signed Public Chapter 950 (2024), which eliminates the property measure from the franchise tax calculation and authorizes the Department of Revenue to issue franchise tax refunds to eligible taxpayers. Taxpayers who paid the franchise tax on the property measure using Schedule G for tax years ending on or after March 31, 2020, for which a return was filed with the department on or after January 1, 2021, are eligible for a refund. Eligible taxpayers must amend the returns for all eligible tax periods to create the Schedule G overpayment and then request the overpayment amount as a refund. Both the amended returns and the refund claim must be submitted by November 30, 2024.
More information can be found here.
|