Public Law 115-97, the “tax reform” legislation enacted last December, effected major changes to federal income tax law. While many of the changes are of relevance specifically to individuals, others affect all businesses, regardless of their form of organization, and some are particularly relevant to corporate taxpayers. Changes summarized below are likely to be of concern to the broadest range of “C corporations” (that is, corporations other than those that have elected “S corporation” status under the applicable rules of the Internal Revenue Code (the Code)). Except as otherwise indicated, changes were effective for taxable years beginning after Dec. 31, 2017.

Corporate tax rate. The graduated corporate income tax rate schedule of prior law, with a top stated rate of 35 percent, has been replaced with a flat tax rate of 21 percent of taxable income.