The 2017 tax reform reconciliation act (Act), signed into law on December 22, 2017, makes numerous changes to US tax law that are likely to enhance the competitiveness of the United States as a location for investments. Consequently, federal and state credits and incentives become increasingly important because many of these programs are based on planned investment in a jurisdiction.
Federal and state credits and incentives can provide significant benefits as companies increase investment in the United States, as expected under the Act. Most federal credits did not change as a result of the legislation but a few were modified and new programs were added. State credits and incentives are useful tools to lower the now more material state tax liability.