14 November 2025 State and Local Tax Weekly for November 7 and November 14 Ernst & Young's State and Local Tax Weekly newsletter for November 7 and November 14 is now available. Prepared by Ernst & Young's State and Local Taxation group, this weekly update summarizes important news, cases, and other developments in U.S. state and local taxation. On November 12, 2025, Pennsylvania Governor Josh Shapiro signed into law Act 45 of 2025 (HB 416), which amends the state's Fiscal Code. Key tax related provisions in the law decouple from select federal tax law changes made by the "One Big Beautiful Bill Act" (OBBBA, P.L. 119-21).1 The law also establishes an affordable housing tax credit and expands and extends select Keystone Opportunity Zones. OBBBA decoupling: Act 45 decouples Pennsylvania's corporate net income tax (CNIT) from select provisions in the OBBBA, specifically those for research and experimental (R&E) expenditures, Internal Revenue Code (IRC) Section 168(n) qualified production property, and the business interest expense limitation under IRC Section 163(j). R&E expenditures: Applicable to tax years beginning after December 31, 2024, the law expands the definition of Pennsylvania "taxable income" to include:
When R&E expenditures are included in taxable income, an additional deduction for R&E expenditures is allowed until the total amount deductible under IRC Sections 174, 59(e) or 174A has been claimed, with the deduction limited to 20% of (1) the remaining unamortized qualified R&E expenditures (IRC Sections 174 or 59(e)), or (2) the qualified R&E expenditures (IRC Section 174A). If amounts related to a change in a taxpayer's accounting method for purposes of IRC Section 481 were included in taxable income (i.e., if a taxpayer makes a federal election under Section 70302(f)(2) of the OBBBA), an additional deduction is allowed until the total amount originally amortizable under IRC Section 174 has been claimed. The additional deduction is equal to 20% of the remaining unamortized qualified R&E expenditures originally subject to amortization. The law makes clear that the total amount of the additional deductions under any of these provisions may not be more than the remaining unamortized qualified R&E expenditures under IRC Sections 174 and 59(e) or the qualified R&E expenditures allowable under IRC Section 174A or originally allowable under IRC Section 174. IRC Section 168(n) qualified production property: Effective immediately, the law expands the definition of "taxable income" to include the amount of the deduction for depreciation of qualified production property claimed under IRC Section 168(n). If such deduction was included in taxable income, an additional deduction for such property is allowed until the total amount included has been claimed. The additional deduction equals the depreciation on the qualified production property for the tax year, as determined under IRC Sections 167 and 168, without application of IRC Section 168(n). If the qualified production property is sold or disposed of during the tax year for which depreciation was included in taxable income, an additional deduction is allowed to the extent the depreciation has not been recovered. IRC Section 163(j): Applicable retroactively to tax years beginning after December 31, 2024, the law requires taxpayers in calculating their Pennsylvania taxable income to apply the federal business interest expense limitation provisions under IRC Section 163(j) as they were in effect on December 31, 2024. Revenue department report: Under the law, the Pennsylvania Department of Revenue has until December 31, 2026, to submit a report to select members of the General Assembly on the impact of decoupling from certain federal tax changes made by OBBBA, including the direct effect of decoupling from certain provisions and the estimated effect of conforming to the above provisions on revenue, as well as the estimated reduction in taxes resulting from the annual decrease in the allowable net operating loss deduction.
For additional information on this development, see Tax Alert 2025-2403. Alabama: The Alabama Department of Revenue (AL DOR) issued a report that examines the key tax provisions in the One Big Beautiful Bill Act (OBBBA) and analyzes how these provisions will impact Alabama's tax system, specifically corporations, financial institutions and individuals, but not pass-through entities or trusts. The report provides a short summary of the OBBBA provision and indicates whether Alabama is tied to that provision. Among the OBBBA provisions the AL DOR indicated that the state is "tied to federal" for corporate tax purposes include: (1) full expensing for certain business property (IRC Section 168(k)); (2) full expensing of domestic research and experimental expenditures (IRC Section 174A); (3) business interest limitation (IRC Section 163(j)); (4) increased limitation for expensing certain depreciable business assets (IRC Section 179); and (5) special depreciation allowance for qualified production property (IRC Section 168(n)). The report discusses several OBBBA provisions related to foreign income and foreign corporations, including provisions under IRC Sections 904(b), 951, 960, 250(a) and (b), 951(A), 954(c)(6)(C) and 59A, relating to foreign tax credit limitations, net controlled foreign corporation (CFC) tested income, foreign-derived deduction eligible income, deduction eligible income, deemed intangible income, CFCs and base erosion and anti-abuse tax. Notable individual income provisions discussed include: (1) the extension and enhancement of the deduction for qualified business income (IRC Section 199A) (not tied to federal); (2) the limitation on individual deduction for certain state and local taxes (IRC Section 164(b)(6)) (tied to federal); (3) no tax on tips (new IRC Section 224) (not tied to federal); (4) no tax on overtime (new IRC Section 225) (not tied to federal); and (5) expansion of the qualified small business stock gain exclusion (IRC Section 1202(a)(1)) (not tied to federal). The AL DOR noted that this report is not a comprehensive, it is "not meant to provide tax guidance but rather is meant to provide general guidance on the OBBBA provisions in relation to Alabama income and financial institution tax laws," and that the conclusions in the report are subject to revisions as additional information (e.g., federal guidance) becomes available. Ala. Dept. of Rev., "The One, Big, Beautiful Bill Act Analysis and Tax Provisions" (updated November 10, 2025). Arizona: The Arizona Department of Revenue issued updated and expanded guidance on the pass-through entity tax (PTET) election. Added provisions explain how to make the PTET election on an amended return and how to revoke the PTET election. The update adds several responses to frequently asked questions (FAQs). The FAQs cover the following topics: (1) how to make or revoke the PTET election; (2) who may participate in the PTET election and whether a partner or shareholder may participate in more than one PTET election; (3) how partners and shareholder claim the PTET credit; (4) income subject to the PTET payment calculation, including income of a partnership or an S corporation whose partners and shareholders do not participate in the PTET election; (5) PTET rates; (6) making estimated tax payments; among other FAQs. Ariz. Dept. of Rev., Pub. 713 "The Arizona Pass-Through Entity Election" (November 4, 2025). Colorado: On November 4, 2025, Colorado voters approved Proposition MM (Prop MM) to help support access to healthy food for Colorado kids and families. Prop MM increases the state taxable income for individuals who have federal taxable income of $300,000 or more by limiting the itemized or standard state income tax deduction to $1,000 for single tax return filers and to $2,000 for those filing a joint tax return. This change is effective for tax years beginning on or after January 1, 2026. Iowa: The Iowa Department of Revenue (Department) recently announced that, beginning January 1, 2026, there will be no subtraction from Iowa taxable income for IRC Section 951A income due to changes in the "One Big Beautiful Bill Act" (OBBBA, P.L. 119-21) from global intangible low-taxed income (GILTI) to net CFC tested income (NCTI). For tax years beginning on or after January 1, 2019, Iowa Code 422.35(12) provided a subtraction for GILTI to the extent included in the Iowa tax base under IRC Section 951A. Under the OBBBA, effective January 1, 2026, IRC Sections 951A and 250 are revised to include NCTI under IRC Section 951A in the federal tax base subject to a 40% deduction under IRC Section 250. Because Iowa law provides no exclusion or other adjustment for NCTI, the 60% of NCTI still included in federal taxable income after the application of the IRC Section 250 deduction will be subject to Iowa income tax. As with GILTI, Iowa law does not treat NCTI as a foreign dividend, or as subpart F income, and no portion of NCTI may be used in calculating a corporate taxpayer's Iowa foreign dividends received deduction. The Department also indicated that the state fully conforms with the federal deduction for foreign derived intangible income (FDII) for 2019 through 2025 and to foreign derived deduction eligible income (FDDEI) for 2026 and after. Iowa Dept. of Rev., "GILTI/NCTI and FDII/FDDEI" (November 4, 2025). For additional information on this development, see Tax Alert 2025-2365. Texas: On November 4, 2025, Texas voters approved Proposition 2 (SJR 18), a Texas Constitutional amendment that prohibits the legislature from taxing the realized or unrealized capital gains of an individual, family, estate or trust, including a tax on the sale or transfer of a capital asset payable by the individual, family, estate or trust selling or transferring the asset. This change does not modify or prohibit a change in the rate of an ad valorem tax on property, a sales tax on the sale of goods or services, or a use tax on the storage, use or other consumption of goods or services in the state. Texas: The Texas Comptroller has proposed amendments to 34 Tex. Admin. Code Section 3.586 "Margin: Nexus," to provide additional guidance on determining economic nexus. The current economic nexus rule provides that a foreign taxable entity that does not have a physical presence in Texas will have nexus with the state and be subject to the state's franchise tax if, during the federal income tax accounting period, it had gross receipts from business done in Texas of $500,000 or more, as sourced under 34 Tex. Admin. Code Section 3.591(e) and (f). For purposes of this provision, "gross receipts" is defined as "all revenue reportable by a taxable entity on its federal return, without deduction for the cost of property sold, materials used, labor performed, or other costs incurred." The Comptroller's proposed amendment would provide that a foreign taxable entity that apportions its margin using a method other than gross receipts must use gross receipts as sourced under 34 Tex. Admin. Code Section 3.591(e) and (f) in determining whether the economic nexus threshold has been met. The earliest the amendment to this regulation could be adopted is December 14, 2025. Tex. Comp. of Pub. Acct., Proposed Amended 34 Tex. Admin. Code Section 3.586 (Tex. Register, Vol. 50, No. 46, November 14, 2025). Texas: The Texas Comptroller of Public Accounts adjusted certain franchise tax thresholds and deduction limits for the 2026 and 2027 report years. For the 2026 and 2027 report years the "no tax due threshold" is increased to $2,650,000 (from $2,470,000 for the 2024 and 2025 report years) and the compensation deduction limit is increased to $480,000 (from $450,000 for the 2024 and 2025 report years). For the 2026 and 2027 report years, the following are the same as the 2024 and 2025 report years: (1) the tax rate (retail or wholesale) is 0.375%; (2) the tax rate (other than retail or wholesale) is 0.75%; (3) the EZ computation total revenue threshold is $20 million; and (4) the EZ computation rate is 0.331%. Tex. Comp. of Pub. Acct., Franchise Tax webpage update (November 2025). Indiana: The Indiana Department of Revenue (IN DOR) updated its Sales Tax Information Bulletin on the lease of motor vehicles and trailers to provide guidance on the exclusion of negative equity from tax and credit for taxes paid to other states. The IN DOR explained that each lease payment is a separate retail unitary transaction and, as such, the full amount of the lease payment is subject to sales tax except where there is negative equity and where credit is given for sales tax paid to another state. The IN DOR said that negative equity from a traded-in vehicle is deductible from the taxable gross retail income for sales tax purposes. In addition, the negative equity built into a series of lease payments is deductible evenly over the life of the leased vehicle. The IN DOR noted that such amounts would normally be taxable as they are included in the capitalized cost of the lease, but such amounts would not be taxable in a comparable sale if such amounts are rolled over into a new loan. The IN DOR said that this is similar to the treatment of amounts received in a like-kind exchange. The updated bulletin also describes when a customer that enters into a vehicle lease in another state and pays sales or use tax on the lease to that state, will be entitled to a credit on sales tax due in Indiana on the periodic lease payments. Other taxes paid on the lease, such as local sales and use taxes and excise tax imposed on the lessor, are not eligible for the credit. Ind. Dept. of Rev., Sales Tax Information Bulletin #28L (November 2025). Iowa: The Iowa Department of Revenue (IA DOR) issued guidance on the state's sales and use tax incentives for data centers. The guidance describes how to qualify for the incentives, including making a minimum investment in an Iowa location of $200 million within the first six years of operation in the state and other requirements and have a physical location in Iowa that is, in the aggregate, at least 5,000 square feet in size that is used for the operations and maintenance of the data center business. The guidance lists items the exemption applies to when purchased or used by a data center business, including computers and equipment that are necessary for the maintenance and operation of a data center business, other property connected to the computers such as cooling systems and racking systems, backup power generation fuel, and electricity purchase for use by a data center business. The guidance also describes the length of the exemption. For example, the exemption for computers is permanent, while the duration of the exemption for backup power generation fuel and electricity varies from 10 years to 15 years to permanent. In order to claim the exemption a data center business must register with the IA DOR, and it will have to maintain its registration and eligibility for exemption by filing an annual report with the IA DOR. The guidance explains how to claim the exemption or refund. In addition, the guidance addresses the partial refund of tax for a minimum investment of $1 million or $10 million (or $5 million for a rehabilitated building). Iowa Dept. of Rev., "Data Center Sales and Use Tax Incentives" (November 3, 2025). Illinois: The Illinois Department of Revenue (IL DOR) issued guidance on changes to the credit for wages paid to returning citizens. Starting January 1, 2026, taxpayers seeking to claim the credit on their tax return will have to apply online with the IL DOR. Credits will be issued on a first-come, first served basis. For tax years ending on or after December 31, 2025, the total amount of credit that can be awarded is capped at $1 million per year; with taxpayers limited to $7,500 in total credit for each qualified returning citizen. For tax years beginning on or after January 1, 2025, taxpayers are entitled to a credit equal to 15% of qualified wages paid by the taxpayer during the tax year to one or more Illinois residents who qualify as returning citizens. "Qualifying wages" include wages subject to federal unemployment tax and wages that are attributable to service rendered during the first-year period beginning on the day the qualified returning citizen begins work. Qualified wages do not include wages paid to a qualified returning citizen for whom the employer received a federally funded payment for on-the job training. Qualified wages also must be reduced by any payments from a program established under Section 482(e)(1) of the Social Security Act. The bulletin describes how to apply for the credit, the information taxpayers will need when applying for the credit, and how to claim the credit. The amount of credit exceeding the taxpayer's tax liability for the year may be carried forward for up to five years. Taxpayers may claim a credit for qualifying wages paid to returning citizens for prior tax years. For tax years ending before December 31, 2025, taxpayers are not required to apply to receive a credit certificate because the aggregate credit limit was not in effect for those periods; for tax years ending on or after December 31, 2025, taxpayers may apply for a prior year's credit if the aggregate credit limit has not been reached for that year. Ill. Dept. of Rev., Informational Bulletin FY 2026-08 (November 2025). Louisiana: The Louisiana Department of Revenue (LA DOR) issued guidance on the work-based learning tax credit. Beginning January 1, 2026, the nonrefundable credit, which can be claimed against the income tax, is available to employers who hire eligible apprentices, interns and youth workers. The guidance explains how employers can qualify for and claim these credits. The credit is $2.50 per hour worked up to $2,500 per eligible worker per tax period; the amount of credit that exceeds the taxpayer's tax liability may be carried forward for up to five years. To qualify for the credit, an eligible business, on or after January 1, 2026, must employ an eligible worker for at least 100 hours during the tax period as an eligible apprentice, an intern or a youth worker. The guidance describes who is an "eligible apprentice", an "intern" or a "youth worker". Employers cannot claim this credit if another hiring incentive is claimed for the same hired worker. The application period for this credit is January 1 through February 28 of each year, with the first application period opening in 2027 for credits earned in 2026. The guidance lists the information that should be included in the credit application. La. Dept. of Rev., Revenue Information Bulletin No. 25-028 (November 10, 2025). Louisiana: The Louisiana Department of Revenue (LA DOR) issued guidance on the Workforce Child Care Tax Credits related to business-supported child care. To qualify for the credit, a business must provide child care for its employees through a facility that has received at least a three-star quality rating from the Department of Education. The guidance lists the amount of eligible business child care expenses that may be claimed for the refundable credit and list the credit rate for child care facilities with a three-, four- or five-star rating. The application period for this credit is January 1 through February 28 of each year, for credits earned in the previous calendar year. The guidance explains how eligible business can claim the credit. La. Dept. of Rev., Revenue Information Bulletin No. 25-029 (November 10, 2025). Delaware: The Supreme Court of Delaware affirmed a Delaware Chancery Court ruling upholding the constitutionality of legislation (HB 242, Del. Laws 2025) that allows New Castle County school districts to create temporary split-rate property tax assessments systems between residential and non-residential properties. In so holding, the Delaware Supreme Court, among other things, found that enactment of HB 242 and the implementation of the law did not violate the Uniformity Clause because the state's classifications of residential and nonresidential are based on a reasonably perceived difference. Newark Property Ass'n v. Delaware, Dkt. No. 449,2025 (Del. S.Ct. November 12, 2025). Texas: On November 4, 2025, Texas voters approved Proposition 9 (HJR 1), a Texas Constitutional amendment authorizing the Texas legislature to exempt from ad valorem taxes a portion of the market value of tangible personal property a person owns that is held or used for the production of income. Because HJR 1 was approved by voters, enabling legislation, HB 9, will take effect. HB 9 exempts from ad valorem tax $125,000 of the appraised value of tangible personal property held or used for the production of income and has taxable situs at the same location as the taxing unit. The exemption applies to each separate location in a taxing unit in which the person holds such tangible personal property. The ad valorem tax exemption is also available to a person who leases tangible personal property. The exemption applies to $125,000 of the total appraised value of all the tangible personal property the person owns that is held or used for the production of income and is subject to a lease, regardless of where such property is located in the taxing unit. If the person is a related business, the person's property will be aggregated with the property that has a taxable situs at the same location in the taxing unit and that is owned by each other related business entity that is part of the same unified business enterprise to determine taxable value for the entity. A person will be required to render tangible personal property they own that is held or used for the production of income if, in their opinion and as applicable: (1) the aggregate market value of the property that has a taxable situs in the same location in at least one taxing unit that participates in the appraisal district (taxing unit) is greater than the exempted amount, or (2) the aggregate market value of the property in at least one taxing unit is greater than the exempted amount. A person who elects not to render property will have to file a rendition statement or property report. The law describes the information that must be included in the rendition statement. HB 9 applies to ad valorem taxes imposed for a tax year beginning after January 1, 2026. Tex. Laws 2025, HB 9, signed by the governor on June 12, 2025. Texas: On November 4, 2025, Texas voters approved Proposition 5 (HJR 99), a Texas Constitutional amendment authorizing the Texas legislature to exempt from ad valorem taxes tangible personal property consisting of animal feed held by the owner of the property for sale at retail. The Texas legislature may provide additional eligibility requirements for the exemption. Because the constitutional amendment was approved, enabling legislation, HB 1399, which was enacted on May 24, 2025, will take effect on January 1, 2026. The exemption applies to ad valorem taxes imposed for a tax year beginning on or after January 1, 2026. Wisconsin: New law (SB 84) exempts from real estate transfer taxes transfers between grandparent and grandchild (the law already exempts transfers between parent and child, stepparent and stepchild, parent and son-in-law, and parent and daughter-in-law). This change first applies to conveyances filed on the effective date, November 2, 2025. Wis. Laws 2025, Act 38 (SB 84), signed by the governor on October 31, 2025. Minnesota: The Minnesota Department of Revenue (MN DOR) issued guidance on the state's nonconformity to 2025 federal law changes enacted under the One Big Beautiful Bill Act (OBBBA). Minnesota currently adopts the Internal Revenue Code as amended through May 1, 2023. The MN DOR said that since the state has not adopted the federal changes made by OBBBA, taxpayers may have to make an adjustment on their Minnesota return, especially if the OBBBA provisions affect the amount of taxable income reported on the taxpayer's federal form. The MN DOR said that it has updated forms and instructions to help taxpayers calculate nonconformity adjustments. Minn. Dept. of Rev., "2025 Federal Nonconformity for Income Tax" (last updated November 3, 2025). Iowa: The Iowa Department of Revenue (IA DOR) adopted amendments to Iowa Admin. Code (IAC) Sections 701 — 6.4 and 701 — 7.3 regarding contested case procedures. The rules on how to submit an appeal, petition or related documents; services under IAC Section 701 — 7.3(1) have been amended to allow taxpayer to file appeals through GovConnectIowa (taxpayers were already allowed to file petitions for declaratory order, petitions for rulemaking, and petitions for rule waiver through GovConnectIowa). Such actions may be filed for all matters before the IA DOR. IAC Section 701 — 6.4 has been amended to allow contested cases related to alcohol and lottery proceedings to submit a request for a contested case proceeding using one of the methods described in IAC 701 — 7.3(1) (i.e., via GovConnectIowa, email or mail). The amended rules were adopted on October 22, 2025 and they take effect on December 17, 2025. Multistate: The October 2025 edition of the Payroll Month in Review, which summarizes the latest employment tax and other payroll developments, is now available. The October edition highlights developments in US federal, state and local payroll and human resources matters as well as our insights to improve US employment tax and payroll compliance. This month's publication features the insight "Watch for state income tax withholding rounding rules." The October edition is available via Tax Alert 2025-2221. Multistate: The US Treasury Department shows that for 2025, a FUTA credit reduction applies to two jurisdictions (California and the Virgin Islands) because they failed to repay their outstanding loan balance by November 10, 2025. (US Treasury website.) For more on this development, see Tax Alert 2025-2281. Mississippi: The Mississippi Department of Revenue (MS DOR) issued guidance on the state's new $2 fee on emergency communications service charges on services provided by telecommunications service providers. The new fee begins on January 1, 2026, and it replaces the current service charges levied under Miss. Code Ann. Section 19-5-314, which will be repealed as of December 31, 2025. The MS DOR noted that the five-cent fee levied under Miss. Code Ann. Section 19-5-357 remains in effect. The new emergency communications service charge is $2 per month per: (1) residential telephone subscriber line, (2) commercial telephone subscriber line for exchange telephone services, (3) voice over internet protocol subscriber account, and (4) CMRS connection. The service provider should report charges collected based on the customer's service address of the customer for which the services are provided. If the service address is unknown, the customer's billing address should be used. Miss. Dept. of Rev., Notice 72-25-17 "Notice to Telecommunications Service Providers" (November 5, 2025). Mississippi: The Mississippi Department of Revenue (MS DOR) issued guidance on the state's new $2 fee on emergency communications service charges for prepaid wireless telecommunications services purchased in a retail transaction. The new fee begins with retail transactions occurring on or after January 1, 2026, and it replaces the current prepaid wireless telecommunications charge of $1 per transaction levied under Miss. Code Ann. Section 19-5-343, which will be repealed as of December 31, 2025. Miss. Dept. of Rev., Notice 72-25-16 "Notice to Retailers Who Sell Prepaid Wireless Telecommunications" (November 5, 2025). Texas: On November 4, 2025, Texas voters approved Proposition 6 (HJR 4), a Texas Constitutional Amendment that prohibits the legislature from enacting a law that would impose an occupation tax on a registered securities market operator or impose a tax on securities transactions conducted by a registered securities market operator. A "a registered securities market operator" includes certain entities subject to registration with and regulation by the United States (US) Securities and Exchange Commission or the US Commodity Futures Trading Commission, such as an exchange that is registered as a national securities exchange; a self-regulatory organization, financial institution, broker, dealer, clearing agency or transfer agent as those terms are defined by the Securities Exchange Act of 1934; an alternative trading system, board of trade, commodity pool operator, derivatives clearing organization, electronic trading facility, or organized exchange as they are defined in the Commodity Exchange Act; affiliates, subsidiaries or facilities of these described entities, or; a trade reporting facility. The change does not prohibit the imposition of a general business tax measured by business activity, a tax on the production of minerals, a tax on insurance premiums, a sales and use tax on tangible personal property or services, a fee based on the cost of processing or creating documents, or a change in the rate of an existing tax. Virginia: The Virginia Department of Taxation announced that the Virginia Disposable Plastic Bag Tax has been adopted by Richmond effective January 1, 2026. The tax applies to disposable plastic bags provided to customers in grocery stores, convenience stores and drugstores within the locality. Richmond joins the following cities and counties in charging a plastic bag tax: the cities of Alexandria, Charlottesville, Fairfax, Falls Church, Fredericksburg and Roanoke and the counties of Albemarle, Arlington, Fairfax and Loudoun. Additional information on the tax is available here. Va. Dept. of Taxn., Tax Bulletin 25-6 (November 10, 2025). Federal - International: As we approach the end of 2025, the pace of change in global trade remains relentless. Trade professionals are navigating a landscape shaped by ongoing geopolitical shifts, regulatory transformation, and the increasing integration of sustainability and technology into every aspect of trade operations. In this edition of TradeWatch, we bring together insights and analysis from around the globe to help you anticipate challenges and seize new opportunities. This issue features a special focus on the relationship between customs valuation and transfer pricing, with global case studies and the latest guidance from the World Customs Organization. You'll also find practical guidance on customs value declaration reforms, updates on climate-related trade measures such as carbon taxes and fee proposals, and coverage of significant regulatory developments — including the EU's evolving steel safeguard measures, the transformative EU-Singapore Digital Trade Agreement, and the European Council's position on EU customs reform. A copy of TradeWatch 2025, Issue 2 is available via Tax Alert 2025-2216. Federal: On November 4, 2025 President Trump signed two executive orders formalizing commitments made with President Xi during a recent bilateral meeting in South Korea, including the reduction of tariffs imposed under the International Emergency Economic Powers Act. For more information on this development, see Tax Alert 2025-2247. Federal: In a Fact Sheet issued on November 1, 2025, United States President Donald Trump announced that China has agreed to a series of measures aimed at rebalancing trade and addressing national security concerns. This announcement followed meetings held in South Korea between President Trump and President Xi of China. The announcement also highlights new commitments secured in South Korea to "support American jobs," strengthen US energy and technology leadership, and "build the US-Korea maritime partnership." For additional information on this development, see Tax Alert 2025-2220. Because the matters covered herein are complicated, State and Local Tax Weekly should not be regarded as offering a complete explanation and should not be used for making decisions. Any decision concerning matters covered herein should be reviewed with a qualified tax advisor.
Document ID: 2025-2537 | ||
