Record for the Final Section 316(b) Phase II Existing Facilities Rule

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Author: Abt Associates, Inc.

Source: State Corp Rates: from the Federation of Tax Administrators (http://www.taxadmin.org/)

Federal Tax Rate: from the Department of the Treasury, IRS, 2008 Instructions for Forms 1120

Release Date: April 2008

Date Created: 6/18/2008

Date Modified: 5/10/2011

Purpose: Contains total tax rate (total tax = state tax + federal tax - state tax * federal tax). Used for estimation of after-tax compliance costs.

File Contents:

Worksheet Contents

StateCorpTax2008 Contains State tax rates.

FedTax2008 Contains federal tax rates.

Total_Rates Calculates total tax rates.

Input Files:

External data used in calculations/analysis:

None.

February 13, 2004 Page 1 of 6 EPA-HQ-OW-2008-0667-DRAFT-1477.xls - FileInfo
Record for the Final Section 316(b) Phase II Existing Facilities Rule

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A B C D E F G H I J K L M

Total Tax Rate Changed compared to old

Federal Tax Rate 35.00% Total Tax Rate is calculated to avoid double-taxation: State + Corporate - (State * Corporate)

1 2 3 4

State Corporate Tax RatesTax Rates

State Corp.

Tax Rate Total Tax Rate

AL 6.5 6.50% 39%

AK 1.0 - 9.4 9.40% 41%

AZ 6.968 (b) 6.97% 40%

AR 1.0 - 6.5 6.50% 39%

CA 8.84 (c) 8.84% 41%

CO 4.63 4.63% 38%

CT 7.5 (d) 7.50% 40%

DE 8.7 8.70% 41%

FL 5.5 (f) 5.50% 39%

GA 6.0 6.00% 39%

HI 4.4 - 6.4 (g) 6.40% 39%

ID 7.6 (h) 7.60% 40%

IL 7.3 (i) 7.30% 40%

IN 8.5 8.50% 41%

IA 6.0 - 12.0 12.00% 43%

KS 4.0 (l) 4.00% 38%

KY 4.0 - 6.0 (m) 6.00% 39%

LA 4.0 - 8.0 8.00% 40%

ME 3.5 - 8.93 (n) 8.93% 41%

MD 8.3 8.30% 40%

MA 9.5 (o) 9.50% 41%

MN 9.8 (q) 9.80% 41%

MS 3.0 - 5.0 5.00% 38%

MO 6.25 6.25% 39%

MT 6.75 (r) 6.75% 39%

NE 5.58 - 7.81 7.81% 40%

NH 8.5 (s) 8.50% 41%

NJ 9.0 (t) 9.00% 41%

NM 4.8 - 7.6 7.60% 40%

NY 7.5 (u) 7.50% 40%

NC 6.9 6.90% 39%

ND 2.6 - 6.5 6.50% 39%

OH 5.1 - 8.5 (w) 8.50% 41%

OK 6.0 6.00% 39%

OR 6.6 (b) 6.60% 39%

PA 9.99 9.99% 41%

RI 9.0 (b) 9.00% 41%

SC 5.0 5.00% 38%

SD --- 0.00% 35%

TN 6.5 6.50% 39%

UT 5.0 (b) 5.00% 38%

VT 6.0 - 8.5 8.50% 41%

VA 6.0 6.00% 39%

WV 8.5 8.50% 41%

WI 7.9 7.90% 40%

DC 9.975 (bb) 9.98% 41%

State and Corporate Tax Rates

February 13, 2004 Page 2 of 6 EPA-HQ-OW-2008-0667-DRAFT-1477.xls - Total_Rates
Record for the Final Section 316(b) Phase II Existing Facilities Rule

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A B C D E F G H I J K L M

MI 4.95 (p) 4.95% 38%

NV 0 0.00% 35%

TX (z) 0.00% 35%

WA 0 0.00% 35%

WY 0 0.00% 35%

VI 3.50% 37.28%

February 13, 2004 Page 3 of 6 EPA-HQ-OW-2008-0667-DRAFT-1477.xls - Total_Rates
Unchanged from 2006

Same in 2009

Over But not Over Dollar Amount Plus % Of

$ - $ 50,000.00 15%

$ 50,000.00 $ 75,000.00 $ 7,500.00 25% $ 50,000.00

$ 75,000.00 $ 100,000.00 $ 13,750.00 34% $ 75,000.00

$ 100,000.00 $ 335,000.00 $ 22,250.00 39% $ 100,000.00

$ 335,000.00 $ 10,000,000.00 $ 113,900.00 34% $ 335,000.00

$ 10,000,000.00 $ 15,000,000.00 $ 3,400,000.00 35% $ 10,000,000.00

$ 15,000,000.00 $ 18,333,333.00 $ 5,150,000.00 38% $ 15,000,000.00

$ 18,333,333.00 35%

If Taxable Income Is: Tax is

Federal Tax Rates

Source:

- Federal Tax Rate obtained from the Dept of the Treasury, IRS, 2008 Instructions for Form 1120, p. 

17 (http://www.irs.gov/pub/irs-pdf/i1120.pdf)
RANGE OF STATE CORPORATE INCOME TAX RATES

 (For tax year 2008 -- as of January 1, 2008)

State Tax Rates # of BracketsBank Tax Rates

Federal Tax 

Deductible

AL ALABAMA 6.50 1 6.5 *

AK ALASKA 1.0 - 9.4 10,000 90,000 10 1.0 - 9.4

AZ ARIZONA 6.968 (b) 1 6.968 (b)

AR ARKANSAS 1.0 - 6.5 3,000 100,000 6 1.0 - 6.5

CA CALIFORNIA 8.84 (c) 1 10.84 (c)

CO COLORADO 4.63 1 4.63

CT CONNECTICUT 7.5 (d) 1 7.5 (d)

DE DELAWARE 8.7 1 8.7-1.7 (e)

FL FLORIDA 5.5 (f) 1 5.5 (f)

GA GEORGIA 6.0 1 6.0

HI HAWAII 4.4 - 6.4 (g) 25,000 100,000 3 7.92 (g)

ID IDAHO 7.6 (h) 1 7.6 (h)

IL ILLINOIS 7.3 (i) 1 7.3 (i)

IN INDIANA 8.5 1 8.5

IA IOWA 6.0 - 12.0 25,000 250,000 4 5.0 * (k)

KS KANSAS 4.0 (l) 1 2.25 (l)

KY KENTUCKY 4.0 - 6.0 (m) 50,000 100,000 3 --- (a)

LA LOUISIANA 4.0 - 8.0 25,000 200,000 5 --- (a) *

ME MAINE 3.5 - 8.93 (n) 25,000 250,000 4 1.0

MD MARYLAND 8.3 1 8.3

MA MASSACHUSETTS 9.5 (o) 1 10.5 (o)

MI MICHIGAN 4.95 (p) 1 -- (a)

MN MINNESOTA 9.8 (q) 1 9.8 (q)

MS MISSISSIPPI 3.0 - 5.0 5,000 10,000 3 3.0 - 5.0

MO MISSOURI 6.25 1 7.0 * (k)

MT MONTANA 6.75 (r) 1 6.75 (r)

NE NEBRASKA 5.58 - 7.81 50,000 2 --- (a)

NH NEW HAMPSHIRE 8.5 (s) 1 8.5 (s)

NJ NEW JERSEY 9.0 (t) 1 9.0 (t)

NM NEW MEXICO 4.8 - 7.6 500,000 1 million 3 4.8 - 7.6

NY NEW YORK 7.5 (u) 1 7.5 (u)

NC NORTH CAROLINA 6.9 1 6.9 (v)

ND NORTH DAKOTA 2.6 - 6.5 3,000 30,000 5 7.0 (b) *

OH OHIO 5.1 - 8.5 (w) 50,000 2 --- (w)

OK OKLAHOMA 6.0 1 6.0

OR OREGON 6.6 (b) 1 6.6 (b)

PA PENNSYLVANIA 9.99 1 --- (a)

RI RHODE ISLAND 9.0 (b) 1 9.0 (x)

SC SOUTH CAROLINA 5.0 1 4.5 (y)

SD SOUTH DAKOTA --- 6.0-0.25% (b)

TN TENNESSEE 6.50 1 6.5

TX TEXAS (z) (z)

UT UTAH 5.0 (b) 5.0 (b)

VT VERMONT (b) 6.0 - 8.5 10,000 250,000 3 --- (a)

VA VIRGINIA 6.0 1 6.0 (aa)

WV WEST VIRGINIA 8.5 1 8.5

WI WISCONSIN 7.9 1 7.9

DC DIST. OF COLUMBIA9.975 (bb) 9.975 (bb)

NV 0.00

WA 0.00

WY 0.00

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Tax Brackets

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Source: Compiled by FTA from various sources

Note: Nevada, Washington, and Wyoming do not have state corporate income taxes.

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(a) Rates listed include the corporate tax rate applied to financial institutions or excise taxes based on income. Some states have other taxes 

based upon the value of deposits or shares.
(b) Minimum tax is $50 in Arizona, $50 in North Dakota (banks), $10 in Oregon, $500 in Rhode Island, $500 per location in South Dakota 

(banks), $100 in Utah, $250 in Vermont.

(c) Minimum tax is $800. The tax rate on S-Corporations is 1.5% (3.5% for banks).

(d) Or 3.1 mills per dollar of capital stock and surplus (maximum tax $1 million) or $250.

(e) The marginal rate decreases over 4 brackets ranging from $20 to $650 million in taxable income. Building and loan associations are 

taxed at a flat 8.7%.

(f) Or 3.3% Alternative Minimum Tax. An exemption of $5,000 is allowed.

(g) Capital gains are taxed at 4%. There is also an alternative tax of 0.5% of gross annual sales.

(h) Minimum tax is $20. An additional tax of $10 is imposed on each return.

(i) Includes a 2.5% personal property replacement tax.

(k) Fifty percent of the federal income tax is deductible.

(l) Plus a surtax of 3.35% (2.125% for banks) on taxable income in excess of $50,000 ($25,000).

(m) Minimum tax of $175. Or, an annual Limited Liability Tax for all corporations with over $3 million in gross receipts.

(n) Or the Maine Alternative Minimum Tax.

(o) Rate includes a 14% surtax, as does the following: an additional tax of $2.60 per $1,000 on taxable tangible property (or net worth 

allocable to state, for intangible property corporations); minimum tax of $456.

(p) The New Michigan Bussines Tax. First $45,000 of tax base exempt. Plus, 0.8% of modified gross receipts (receipts less purchases from 

other firms) on receipts of $350,000 or more. A surcharge of 21.99% applies.

(q) Plus a 5.8% tax on any Alternative Minimum Taxable Income over the base tax.

(r) A 7% tax on taxpayers using water's edge combination. Minimum tax is $50. (s) Plus a 0.75 percent tax on the enterprise base (total compensation, interest and dividends paid) for businesses with gross income over 

$150,000 or base over $75,000. Business profits tax is imposed on both corporations and unincorporated associations with gross income 

over $50,000.

(t) The rate reported in the table is the corporation business franchise tax rate. Corporations with net income under $100,000 are taxed at 

7.5%. Corporations with net income under $50,000 are taxed at 6.5%. A 4% surtax applies through July 1, 2009. The minimum tax is 

$500. An Alternative Minimum Assessment based on Gross Receipts applies if greater than corporate franchise tax. Banking and financial 

corporations are subject to the franchise tax.

(u) Or 1.78 mills per dollar of capital (up to $350,000); or a 1.5% alternative minimum tax; or a minimum tax of $1,500 to $100 depending 

on payroll size; if any of these is greater than the tax computed on net income. Small corporations with income under $290,000 are subject 

to lower rates of tax on net income. An additional tax of 0.9 mills per dollar of subsidiary capital is imposed on corporations. For banks, 

the alternative bases of tax are 3% of alternative net income; or up to 1/50th mill of taxable assets; or a minimum tax of $250.

(v) Financial institutions are also subject to a tax equal to $30 per one million in assets.

(w) Rates shown are for the Franchise tax, which is being phased out through 2010. Current rates apply to 40% of the liability, or 40% of 4 

mills time the value of the taxpayer's issued and outstanding share of stock with a maximum payment of $150,000; or $50 to $1,000 

minimum tax, depending on worldwide gross receipts. The Commercial Activity Tax (CAT) equals $150 for gross receipts between 

$150,000 and $1 million, plus 0.26% of gross receipts over $1 million. The CAT applies to 60% of receipts through March 31, and 80% 

for the remainder of the year. Banks will pay the Franchise tax. An additional litter tax is imposed equal to 0.11% on the first $50,000 of 

taxable income, 0.22% on income over $50,000; or 0.14 mills on net worth.

(bb) Minimum tax is $100. Includes surtax.

(x) For banks, the alternative tax is $2.50 per $10,000 of capital stock ($100 minimum).

(y) Savings and Loans are taxed at a 6% rate.

(z) Texas imposes a Franchise Tax, known as the margin tax. It is imposed at 1.0% (0.5% for retail or wholesale entities) of gross revenues 

over $300,000, with a variable discount allowed for businesses with revenues between $300,000 to $900,000.

(aa) State and national banks subject to the state's franchise tax on net capital is exempt from the income tax.