Decoupling the Tax Cuts and Jobs Act (TJCA) Amendment to Section 174 of the Internal Revenue Code

HB 163 is a taxation and revenue bill that proposes to "decouple" state tax law from a specific federal change made by the Tax Cuts and Jobs Act (TCJA). This means the state would adopt different rules than the federal government regarding Section 174 of the Internal Revenue Code, which concerns the tax treatment of research and experimental expenditures. While the bill's aim is to establish separate state tax rules for these expenditures, the provided text does not detail the specific mechanisms of this decoupling. If passed, the bill would become effective immediately.