SB 15 – Allows full deductibility of federal taxes for state income tax purposes

• Sponsor: Lembke
• LR Number: 0221S.01I
• Committee: Ways and Means and Fiscal Oversight
• Last Action: 1/12/2011 - Second Read and Referred S Ways and Means and Fiscal Oversight Committee
• Journal Page: S85
• Effective Date: August 28, 2011

Current Bill Summary

SB 15 - This act allows the full deductibility of federal income tax liabilities of corporations and individuals for state income tax purposes for all tax years beginning after January 1, 2012. Under current law, corporations are allowed to deduct 50% of their federal income tax liability, and individuals are limited to deducting no more than of $5,000 of their federal income tax liability per tax year on a single return or $10,000 of their federal income tax liability on a combined return.

JASON ZAMKUS