Cash Cushions Make States Slow to Grab Corporate Tax Opportunity

Just a few states have corporate alternative minimum taxes, but the arrival of a new federal program has created a fresh opportunity for local officials to seriously consider following Washington’s lead.

The Biden administration’s inflation reduction law created a new avenue for taxing large multinational corporations that’s expected to net $222 billion for the federal government over 10 years—a massive chunk of money intended to pay for numerous economic, social and environmental priorities in the measure.

The chance to adopt similar plans hasn’t been missed by state tax hawks. It’s provided a timely hook for those long frustrated by large ...