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Budget and the Bees
Budget and the Bees
Latrice Perez

Illinois and Pennsylvania Quietly Decouple From Federal Tax Law — What It Means for Businesses and Revenue

Illinois
Image source: shutterstock.com

You have likely spent months planning your business strategy around the new federal tax incentives passed in Washington. You expect those deductions to lower your liability and free up cash for new equipment or hiring. However, a major shift is happening at the state level that could completely erase those savings. Illinois and Pennsylvania have quietly moved to decouple from key parts of the federal tax law to protect their own budgets.

This creates a hidden system of double-taxation where a federal ‘win’ becomes a state ‘loss.’ It is not your fault that the tax code is getting more complicated, but you must understand these changes before you file your 2026 returns. Today, we reveal the details of this tax alert and how it impacts your bottom line.

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