obama tax: Potential state income tax impact of Obama administration's proposed international tax law changes

The U.S. Treasury Department released its "Greenbook" in May 2009, setting forth the tax proposals contained in President Obama's FY 2010 budget, and in September 2009, the Joint Committee on Taxation issued a report on these proposals.

This Multistate Tax Alert : i) identifies three proposed international tax changes that, if enacted, may have a significant state income tax impact; and ii) summarizes what that impact might be. These proposals are referred to in the Alert as:

- Deferred deductions or the deduction deferral provision
- Foreign entity rules
- Repeal of the "80/20 company" exception