Nebraska Lawmakers Asked to Make Foreign Income Deductible

Nebraska is considering a legislative plan to clarify that earnings from foreign subsidiaries and repatriation income are deductible for state tax purposes, reversing course on a controversial tax policy announced late last year.

Sen. Lou Ann Linehan (R) on Jan. 23 introduced L.B. 1203, which seeks to remedy a bubbling dispute between the business community and the Nebraska Department of Revenue over recent guidance interpreting the corporate tax code in the aftermath of the federal 2017 tax law. In December, the department said multinational corporations must include global intangible low-taxed income, or GILTI, and foreign-derived intangible income, or ...