State and Local Tax Update for Q4 of 2020

Below is a link to Schneider Down’s Latest State and Local Tax Developments. The state and local tax practice at Schneider Downs has summarized the latest state tax developments for the quarter ended December 31, 2020. This summary includes both enacted state tax legislative developments, judicial developments and administrative guidance. Please take note that this summary is not an all-encompassing list of all the changes in tax law.

The following are some highlights from states in our region:

Pennsylvania

The Pa legislature enacted SB 30, establishing the PA housing tax credit which will be administered using the same guidelines, procedures and priorities that the PA Housing Finance Agency uses to administer the federal housing credit under IRC Sec. 42.

City of Philadelphia

Philadelphia extended its waiver on teleworkers creating nexus when working from home within city limits. Through its website, the city extended its waiver “until the earlier of June 30, 2021, or 90 days after the Proclamation of Disaster Emergency in Pennsylvania is lifted.”

District of Columbia

Beginning for tax years after December 31, 2017, corporations, unincorporated businesses, and financial institutions will now be allowed only an 80% deduction for their D.C. net operating loss carryovers. This measure was taken in order to balance their budget in reaction to the Covid-19 pandemic. The law additionally excludes loans under the federal Paycheck Protection Program and the subsequent forgiveness under 1106 of the CARES act from D.C. gross income.

Connecticut

House Bill 7006 was enacted to provide an exception for “disaster-related or emergency-related work” for out-of-state individuals and out-of-state businesses. If the business or the individual meets the definition under the statute, the taxpayer will not be subject to any Connecticut tax on income from performing disaster-related or emergency-related work during the disaster period.

The state and local tax practice at Schneider Downs will continue to provide these updates on a quarterly basis. Any questions regarding the content of this update please contact Matthew Dodge or Justin Premich of the state and local tax team.

Our State and Local Tax team of professionals is available to help you.  Please don’t hesitate to reach out to them, or to your Schneider Downs tax advisor for additional information regarding SALT issues needing to be addressed.