KPMG reports: Illinois, New York State, Pennsylvania, Utah

Illinois, New York State, Pennsylvania, Utah

KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments.

  • Illinois: The governor’s FY 2022 budget outlines a proposal to cut spending and to close $932 million worth of corporate “loopholes.” Revenue raising measures that could affect corporate income taxpayers include limiting corporate net operating losses (NOLs) to $100,000 per year, decoupling from the federal 100% bonus depreciation, and aligning the state’s treatment of foreign-source dividends to its treatment of domestic-source dividends. Read a February 2021 report
  • New York State: An administrative law judge concluded that a taxpayer owed sales tax on property and equipment it acquired under the terms of a limited liability company (LLC) purchase agreement. The taxpayer argued that the acquisition was merely a transfer of the intangible equity interests in the LLC. The administrative law judge, however, found that the taxpayer acquired taxable tangible assets in the transaction, but also concluded that certain of the tangible personal property acquired qualified for sales and use tax exemptions. Therefore, the assessment was reduced to capture only the taxable transactions. Read a February 2021 report
  • Pennsylvania: The Department of Revenue announced a new voluntary compliance effort aimed at retailers that had inventory or other property stored in Pennsylvania but had not filed the appropriate returns. The program runs through May 8, 2021, and offers penalty relief for past due tax returns that were not filed and taxes that were not paid. It does not appear that interest will be abated. For participating businesses, the lookback period is limited to January 1, 2019, and taxpayers that participate in the program will not be liable for taxes prior to that date. Read a February 2021 report
  • Utah: House Bill 39, which passed both the House and Senate, retroactively clarifies the state’s tax treatment of IRC section 965 income, global intangible low-taxed income (GILTI), and foreign-derived intangible income (FDII). Specifically, amounts included in income under IRC sections 965(a) and 951A are eligible for the state’s 50% dividends-received deduction. Further, the bill clarifies that Utah is a “Line 28 state,” that the deduction for FDII is not allowed, and that the 50% dividends-received deduction applies to the gross amount of GILTI and IRC section 965 income included in the tax base. Read a February 2021 report

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us