KBF State Income Tax Newsletter – 1st Quarter 2025

KBF’s quarterly newsletter updates clients on state and local income/franchise tax news, developments, and trends. Please note that this information is for discussion purposes only and does not constitute specific tax advice.

Idaho has retroactively reduced its corporate and individual income tax rates to 5.3% and enacted exemptions for certain military benefits and precious metal transactions, effective January 1, 2025. Michigan introduced new research and development tax credits for “authorized businesses” with varying credit amounts and maximums based on employee count and collaboration with Michigan universities, with a $100 million annual cap on total credits granted. Lastly, Utah has also lowered its corporate and individual income tax rates to 4.5%, effective for tax years beginning on or after January 1, 2025.

Read more about these updates by downloading the newsletter here. For more information or specific tax guidance, please contact Nick McMahon at nmcmahon@kbfcpa.com or connect with a KBF professional here.