House passes Mobile Workforce and nuclear tax credit legislation

Tax Hot TopicsThe House voted last week to ease restrictions on nonresident state withholding and income tax and to extend the nuclear production tax credit.

The Mobile Workforce State Income Tax Simplification Act (H.R. 1393) would exempt employers from state withholding for nonresident employees who work less than 30 days in any state. Previous versions of the bill have passed the House in other congressional sessions, but the legislation has never been able to overcome Senate opposition in states like New York that stand to lose revenue.

The House also passed H.R. 1551, which would allow nuclear power facilities currently under construction to qualify for the Section 45J production tax credit even if they are not placed in service by the current statutory deadline of Dec. 31, 2020.

The provision is largely aimed at supporting two current construction projects that have faltered, but Senate tax writers have made no commitment to pass the bill.

Dustin Stamper
Director, Washington National Tax Office
T +1 202 861 4144

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.