Critical Developments: New Updates on Tax Exemptions for Durable Medical Equipment in South Carolina!
The South Carolina Supreme Court recently invalidated a sales tax statute under the Commerce Clause. The statute provided an exemption for durable medical equipment but limited this benefit to businesses with their principal place of business in South Carolina. The Court determined that this condition was discriminatory against interstate commerce, favoring in-state businesses over those […]
Supreme Court Weakens Shield for Taxpayers
In Uline, Inc. v. Commissioner (Minn., No. A23-1561, 2024), the court determined the market research activities by a Wisconsin company’s sales representatives in Minnesota went beyond mere “solicitation of orders” defined by federal law. As states continue to scrutinize compliance with P.L. 86-272 during audits, it becomes increasingly important for companies to review their business […]
Supreme Court Ruling Ends Chevron Deference, Altering IRS Authority on Ambiguous Tax Laws
The Internal Revenue Service’s interpretation of ambiguous tax laws may no longer be authoritative or binding on taxpayers. In the recent United States Supreme Court ruling of Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce, on June 28, 2024, the Court overturned a long-standing legal doctrine known as the Chevron deference. […]
IRS Finalizes Prevailing Wage and Apprenticeship Requirements Impacting Ten Key Tax Benefits
The Department of Treasury and Internal Revenue Service released final legislation on June 18th, 2024, for requirements regarding prevailing wage and apprenticeship (PWA). There are ten tax benefits affected by the Inflation Reduction Act: Alternative Fuel Refueling Property Credit Credit for Carbon Oxide Sequestration Advanced Energy Project Credit Investment Tax Credit (ITC) Clean Fuel Production […]
Vermont’s New Tax Legislation on Remotely Accessed Software
Starting July 1, 2024, Vermont will begin taxing sales of remotely accessed software under Bill H.887. Although initially vetoed by the governor, the legislature overturned the veto on June 17, 2024. Previously, Vermont categorized “prewritten computer software” as “tangible personal property,” but had exempted remotely accessed software since 2015. The new law revises the definition […]
Key Changes and Implications for Businesses Post Tennessee’s Franchise Tax Revamp
On April 25, 2024, the Tennessee General Assembly enacted substantial reforms to the state’s franchise tax structure through House Bill 1893 and Senate Bill 2103, collectively referred to as the Amended Conference Committee Bill. This legislation signifies a fundamental shift from the traditional method of calculating franchise taxes. The Tennessee General Assembly Fiscal Review Committee […]
Software Developers are now Considered Manufacturers in Massachusetts
Massachusetts has introduced a major change to its corporate tax code that impacts software developers. The Massachusetts Department of Revenue’s Technical Information Release (TIR) 23-8 now classifies computer software developers as manufacturing companies for corporate excise tax purposes. Companies that develop and sell access to software allowing customers to input information, manipulate the software, and […]
Revisions to Form 6765
On September 15, 2023, the IRS released a preview of proposed changes to Form 6765, Credit for Increasing Research Activities and solicited public comments about these changes. The preview included a new Business Component Detail section for reporting quantitative and qualitative information for each business component, new questions seeking various information and reordering some of […]
Changes to The Tax Cuts and Jobs ACT of 2017
The Tax Cuts and Jobs Act (TCJA) of 2017 enacted some major changes to the Internal Revenue Code, but some of those provisions were only temporary. A number of significant provisions are set to expire after 2025, including certain tax benefits to businesses. Although it is possible that Congress may extend some of these tax […]