Are federal corporate income taxes deductible for state income taxes?
In general, states do not allow a deduction for federal income
taxes as most states "piggyback" off of federal taxable income as
the beginning of the state income tax calculation. However, the
states of Alabama , Iowa , Louisiana , and Missouri have variations
of state taxable income that allows for some potential deduction
for federal income taxes. Each of these four states has its own
unique methodology for the deduction and each place certain
restrictions on the ability to take the deduction.