Steve Jasper Comments on Tennessee’s Separation from Federal Tax Reform

June 5, 2018
State Tax Notes

Bass, Berry & Sims attorney Steve Jasper commented on the decision by Tennessee lawmakers to opt out of the net interest expense limitation in the federal Tax Cuts and Jobs Act (TCJA) for Tennessee income tax purposes. The federal provision prevents companies from deducting net interest expenses that exceed 30 percent of income beginning January 1, 2020. Tennessee’s decision alleviates this potential tax increase for Tennessee businesses. According to Steve, “The Tennessee Chamber of Commerce was a primary force behind the bill, and I think they recognized that if nothing was done that the burden on Tennessee businesses would be increased significantly. The bill represents a good compromise between the representatives of taxpayers as well as the Department of Revenue and the state administration.”

The full article, “State Decouples from Federal Net Interest Expense Deduction,” was published by State Tax Notes on May 28, 2018, and is available online (subscription required).