How State Corporate Tax Changes Affect Businesses in 2025

Corporate Tax Rate Adjustments

– Nebraska, North Carolina, Pennsylvania: Reducing corporate tax rates to attract businesses. – New Mexico: Eliminating lower tax brackets, increasing taxes for some businesses.

Changes in Business Deduction Rules

– Louisiana: Now allows full expensing for capital investments. – Nebraska: Introduced 60% first-year expensing for business expenditures.

Extended Loss Carryforwards

– Connecticut & Rhode Island: Extended NOL carryforward periods, allowing businesses to offset past losses over a longer timeframe.

Upcoming Tax Proposals

Minnesota: Proposed sales tax cut and expanded tax base on legal, accounting, and brokerage services.