In short
Most states start their income tax calculation from federal taxable income, but they differ in how they follow the federal code: rolling conformity follows it as amended, while static conformity follows it as of a fixed date.
Key takeaways
- Many states decouple from specific provisions, such as bonus depreciation.
- New federal law, such as the One Big Beautiful Bill Act, may not apply for state purposes until the state acts.
- Differences create state adjustments that must be tracked.
Where it's tested
TCP: Multi-Jurisdictional & International Basics — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A company's only activity in a state is sending sales representatives to solicit orders for tangible goods, which are approved and shipped from outside the state. What protection does Public Law 86-272 provide?