Entity Setup
State Adoption of Federal Code Changes: What That Means for Businesses in Florida & Beyond
Florida and other states are updating their corporate tax laws to synchronize with federal changes from 2026—here’s what entities must know now.
By NomadicTax Research Team • 5-8 min read • August 15, 2026
## Federal Changes & Why State Adoption Matters
With the passage of **One Big Beautiful Bill Act (OBBBA)**, the U.S. Internal Revenue Code was amended effective **July 4, 2025**, pushing many changes into effect for the 2025 and 2026 tax years. ([irs.gov](https://www.irs.gov/newsroom/the-working-families-tax-cuts-what-gig-economy-workers-should-know?utm_source=openai))
States that adopt the IRC as of a date can automatically incorporate many federal changes into their state-level tax rules—this affects corporate rates, deductions, depreciation, and more.
## Florida’s Move in 2026
- The **Florida Senate** recently passed a measure for the 2026 session **adopting the IRC in effect on January 1, 2026**, with specific carve-outs. ([flsenate.gov](https://www.flsenate.gov/Committees/billsummaries/2026/html/7031?utm_source=openai))
- That means businesses in Florida should expect many of the OBBBA-specific federal changes to be mirrored in state corporate income tax filings.
## Impacts for Businesses & Entities
- **Depreciation & Bonus Depreciation**: Equipment purchases and business assets may qualify for more generous deductions under federal law that Florida will now largely recognize.
- **Backup Withholding & Information Reporting** may align more with federal thresholds—important for entities using third party settlement networks.
- **Compliance Complexity**: Entities operating in multiple states should check which adopt federal amendments and which do not: reconcile federal deductions with state taxable incomes to prevent surprises.
## Action Steps for Entity Owners in Florida (and Similar States)
- Review upcoming Florida Department of Revenue rulings and administrative rules—they may clarify exceptions to federal conformity.
- For multi-state businesses, track conformity across jurisdictions. States like New York or Texas may follow different IRC adoption dates.
- Prepare for changes in tax planning: accelerate or defer expenses based on bonus depreciation rules; assess how state tax liability shifts when you use deductions recognized federally.
Conforming to federal tax law changes isn't automatic everywhere—but Florida's move signals a growing trend. Entities that stay ahead will both reduce surprises and maximize allowed benefits.