OBBBA and State Conformity: Will Your State Follow the Federal Lead?

The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, doesn’t only affect taxpayers at the federal level. It also affects them at the state level, depending on the extent to which a taxpayer’s state conforms with federal tax law. There generally are three degrees of conformity: 1) rolling conformity, which automatically aligns a state’s tax code to federal changes; 2) static conformity, which connects a state’s tax code to the federal code as of a specific date and requires state legislation to update; and 3) selective conformity, which gives states flexibility to accept or reject individual changes.