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An artificial intelligence agent does not need a desk, a company badge, or a W-2 to change a taxpayer’s state tax profile. It may answer customer questions, negotiate terms, approve transactions, monitor equipment, issue refunds, arrange delivery, or transmit a software fix. Each task can occur in seconds and at national scale. The state tax question, however, is not whether the agent is a person. It is whether the business, through the agent, is conducting an activity that a state may tax.

That distinction matters. The Supreme Court’s decision in South Dakota v. Wayfair, Inc. rejected a physical-presence requirement for sales tax nexus and recognized that an Internet seller can be present in a state in a meaningful way without traditional physical presence.[1] Although Wayfair addressed sales tax, its practical message has influenced the broader state tax conversation: a business cannot assume that activity is outside a state simply because its employees and headquarters are elsewhere.

As organizations begin developing their 2027 budgets and strategic plans, tax credits and incentives should be part of the conversation from the start. Hiring, expansion, technology, research, training, and energy projects may qualify for valuable federal, state, or local programs but timing is critical. Some incentives require applications or approvals before a project begins. Reviewing planned initiatives now can help your organization preserve eligibility, improve projected returns, and avoid missing important opportunities.What Is on Your 2027 Roadmap?