State-by-State Impacts of New Federal Tax Law: What Restaurant Operators Need to Know

The federal tax law passed in July is poised to reshape how restaurant operators and their workforce can reduce taxable income. States will also have their say, and some are quickly responding in their own ways. Tax “conformity” – or how much a State tax system matches the federal laws – can be adopted immediately, adopted with minor changes, or completely decoupled. For example, States like Illinois and Michigan have recently explicitly changed their respective tax laws to disallow tax deductions (at the State level) for 100% bonus depreciation. While an operator in those States continues to take the deduction on their federal returns, there is no such relief at the State level.

In this timely webinar, we’ll explore how State-level tax codes may respond, what that means for your bottom line, and how to prepare for both the opportunities and challenges ahead.

Key Takeaways:

• Why some States have already decoupled from the federal business tax deductions.
• States may allow an even bigger tax deduction by adopting State-level No Tax on Tips and No Tax on Overtime Premium Pay.
• What to look for as your Statehouse begins to convene for 2026.