Wednesday, March 02, 2011

Tax Cut for Businesses May Cost States Money - NYTimes.com

Many states compute tax taxable income based on federal taxable income. The link below outlines how federal law changes that allow for accelerated depreciation of assets may impact state tax collections. Accelerated depreciation deductions will reduce state taxable income and therefore reduce state tax collections. All at a time of intense budget pressures as has been seen in Wisconsin.

Never fear for NYS. NYS "decoupled" from these accelerated depreciation rules a number of years ago. Essentially this means that accelerated depreciation deductions allowed for federal purposes are not allowed when computing NYS taxable income.

Tax Cut for Businesses May Cost States Money - NYTimes.com

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