Tax publication

Redefining the Starting Line - Q2 2026

Publication
9 minute read
July 07, 2026

Welcome to the second issue of Redefining the Starting Line, a quarterly guide to navigating the evolving landscape of state tax compliance in the wake of the One Big Beautiful Bill Act (OBBBA). As we continue our journey through the complex environment of state income tax compliance post-OBBBA, we will showcase some recent state legislative updates to specific tax provision conformity and explore how states conform (or don’t conform) to one of the most significant OBBBA changes – the change to research and experimental expenditure deductions under Sections 174/174A. Finally, we’ll discuss where the state tax compliance landscape is headed as we move into the third quarter.

Our goal remains the same: to empower you with clear insights and practical perspectives as you redefine your state income tax starting line.

In this issue

Legislative round-up—second quarter developments

To 174A or to not 174A—that is the question

What are Sections 174/174A and why does it matter?
Decoupling to pre-OBBBA Section 174
State-specific modifications
Why does it matter?

What’s next?