Conformity Working Group

About the Conformity Working Group

2018 brought us a new year and a new federal tax code. After 31 years since the last major tax overhaul, the Tax Cuts and Jobs Act comprehensively reformed the federal tax system, which, in turn, impacts state tax codes.

Now, the focus on tax reform shifts from Washington, D.C., to all fifty states, raising the question: How will states conform to the new federal tax code?

The Tax Foundation’s Conformity Working Group provides an intimate setting for business and tax policy leaders to strategize about the best ways to engage in this debate and ensure a smooth transition in the states.

How We’re Leading the Charge

The Tax Foundation is the only Washington-based organization with the expertise and the credibility with state lawmakers, the business community, and free-market think tanks to help states navigate the complex issue of tax conformity.

We engaged in more than 35 states last year, interacting with key stakeholders who are responsible for deciding tax policy.

In 2020, we’re relaunching our large-scale campaign to educate state legislators on how and why they should conform to the federal tax code, while capitalizing on the opportunities federal reform can bring to make state tax codes more competitive.

Goals and Objectives

Our primary goal with the State Tax Conformity Working group is to provide your business and key policymakers with timely insight and research on:

  1. The Tax Cuts and Jobs Act and its complex interactions with state tax codes, including GILTI, FDII, NOL provisions, interest limitations, and expensing
  2. Whether and how states are taxing GILTI, raising both competitiveness and legal concerns, particularly with regard to the lack of factor representation
  3. State treatment of capital investment, especially in cases where states have conformed to 163(j) but not 168(k)
  4. The importance of lowering state corporate income tax rates and adopting comprehensive reforms in the post-TCJA environment
  5. Ways to capitalize on TCJA-linked opportunities to make state tax codes more competitive

In order for this effort to be successful, we need your help.

How Can I Get Involved?

If you’re interested in working more closely with Tax Foundation experts to:

Then click the link below to sign up for our Conformity Working Group.

Join Our State Tax Conformity Working Group