Of the 46 states that have held legislative sessions in 2022, six have cut corporate income taxes, says the Tax Foundation, a think tank based in Washington, D.C., that monitors the tax and spending policies of government agencies.

The foundation cites actions by lawmakers in Idaho, Iowa, Nebraska, New Hampshire, Pennsylvania and Utah. Colorado will vote in November on a reduction. The Tax Foundation states that large revenue increases in most states have allowed for rate reductions and reforms.

“The large revenue increases most states have experienced in recent years have proved fertile soil for rate reductions and structural reform,” says the Tax Foundation. “The enhanced mobility facilitated by the pandemic has increased the role of tax competition, further nudging states in that direction.”

The tax codes in U.S. states vary by state. Each state levies a property tax and unemployment insurance tax, but several states forgo one or more of the major taxes, including corporate income tax sales tax or individual income tax, says the Tax Foundation.

For instance, Nevada, South Dakota and Wyoming have not established a corporate income or individual income tax. This year, Nebraska lawmakers voted to cut the top marginal corporate income tax to 7.25% from 7.5% effective Jan. 1, 2023.

Oklahoma became the only state to make permanent the full expensing of large capital investments by C corporations. Pennsylvania will cut the corporate tax rate to 8.99% from 9.99% and annually reduce the levy by 0.5 percentage points until it hits 4.99% at the start of 2031.