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State & Local Tax news

April 2018

In This Issue:


Welcome to the April 2018 issue of the Aprio State & Local Tax (SALT) Newsletter

With dozens of different taxes imposed by the 50 states (and thousands of local jurisdictions), we recognize how challenging it is to keep up with current issues and developments. This newsletter is designed to provide insights on developments in state and local taxes including new legislation, regulations, rulings and cases addressing issues such as corporate and personal income taxes, sales and use taxes, nexus, franchise/net worth taxes, etc.

This issue of the newsletter contains articles concerning (i) significant Georgia legislation passed during the last days of the legislative session, (ii) a Massachusetts letter ruling addressing the impact of a 338(h)(10) election on state tax credit recapture provisions, (iii) an Indiana ruling denying interest deductions by reclassifying intercompany debt as equity, (iv) an Idaho tax commission decision holding that the sale of an LLC membership interest gives rise to apportionable business income, and (v) a Georgia ruling regarding the eligibility of prop purchases/rentals for purposes of the film tax credit.

In case you missed prior issues of this newsletter, please click here.

If you have any comments, questions or suggestions regarding current or future topics, or if you would like to learn more about Aprio's SALT Practice, please email us at Thank you.

Jeff Glickman
Jeff Glickman, J.D., LL.M.
Partner-in-Charge, State & Local Tax Practice
GA Capital

Georgia Legislature Passes Several Tax Bills During Final Days of 2018 Session

By Jeff Glickman, SALT partner

In the final days of the legislative session, the General Assembly passed significant tax legislation, including sales tax economic nexus and an expansion of the Rural Hospital Tax Credit.

signing contract for buisness sale

Massachusetts Rules that Credit Recapture Applies in a §338(h)(10) Transaction

By Jess Johannesen, SALT manager

When purchasing or selling a business, don't ignore the potential state income tax impacts of a 338(h)(10) election.

loan as equity

Indiana Relies on Federal Tax Rules to Recharacterize an Intercompany Loan as Equity

By Jeff Weinkle, SALT manager

States have the authority to adjust federal taxable income (even if the IRS hasn't) based on federal tax principles, as Indiana did in this case by recharacterizing debt as equity.

Idaho Rules That Sale of LLC Interest Generates Apportionable Business Income

By Alissa Graffius, SALT senior associate

An Idaho tax commission decision explains when the sale of an LLC membership interest may give rise to apportionable business income.

Film tax credit

Georgia Issues Film Tax Credit Guidance Addressing Georgia Vendor Requirements

By Tina M. Chunn, SALT senior manager

Production companies in Georgia who purchase or rent property from vendors located in Georgia may not be able to get film tax credits for the cost of obtaining that property if the vendor is really a conduit.


About Aprio's State and Local Tax Practice

Aprio's State and Local Tax (SALT) practice advises clients on the state and local tax implications of their business operations, allowing clients to strategically minimize their liabilities and risks. Our team has over 50 years of combined SALT experience working in industry, state departments of revenue, public accounting and private law practice. We specialize in all areas of SALT, including matters related to state tax nexus, corporate and personal income taxes, sales/use tax, franchise/net worth taxes, credits and incentives, and mergers and acquisitions. In addition, we represent clients in administrative matters before state revenue departments around the country, including audit defense and settlement negotiations, pursuing voluntary disclosure agreements and obtaining letter rulings.