11/17/2025

Tax Conformity around the United States

Here's a brief update from Nonprofit Champions

Many states and the District of Columbia are responding to H.R.1, "the One, Big Beautiful Bill" (OBBB), the major tax bill enacted earlier this year, by choosing whether to follow or decouple from various federal tax provisions that could affect their budgets. As available funding fluctuates, so could the revenues allocated to nonprofits and communities.

• Alabama: The state's Department of Revenue shared that the state automatically conforms to changes in federal corporate taxes, and it will adopt the increase to the state and local tax deduction cap.
• Delaware: A pending bill would change state law to require companies to spread specified corporate tax deductions over multiple years, with some carveouts, and keep this in effect until tax year 2030.
• District of Columbia (Washington, D.C.): Emergency legislation would decouple from the federal $6,000 deduction for seniors, a deduction for overtime pay and other provisions to save an estimated $567 million through the end of Fiscal Year 2029.
• Pennsylvania: The Commonwealth's Fiscal Year 2026 budget bill decouples from three tax provisions in H.R.1 that will prevent an estimated $1.1 billion in tax revenue loss in FY 2026. These provisions are the deduction for research and experimental expenses, interest deduction limitation and expensing for qualified production property.

Currently, the Ohio Society of Association Professionals (OSAP) is unaware of any changes intended to impact orgaizations operating within the state of Ohio.