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)
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)
- 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.