TCAJA introduced two alternative tax regimes available to U.S. based businesses serving foreign markets. The two regimes are the Foreign Derived Intangible Income (FDII) available only to domestic C corporations and Qualified Business Income (QBI) Deduction (§199A). FDII offered a 13.125% effective corporate tax for C corporations. QBI offers an effective rate of 29.6% to individuals and noncorporate owners of passthrough business entities. These two essentially alternative and mutually exclusive concepts need to be considered by practitioners advising clients with foreign customers. Both provisions with emphasis on FDII will be illustrated with worked examples reflecting the latest available guidance.
In response to the housing shortage, California has been strengthening the state-mandated housing allocations for regions to assign to local governments. The state now requires streamlined local approval for housing projects in jurisdictions that are not producing enough housing, ties transportation funding to compliance, and is now suing some local governments for inaction. Join outgoing California Department of Housing and Community Development director Ben Metcalf to discuss this process and where policy may go from here.