With more companies adopting a cloud computing solution, such as switching from boxed software to a pay-as-you-go service, many states are looking into how they could possible tax providers, but according to Infoworld, a federal law may protect the cloud from being over-taxed.

David Linthicum writes on the website that Oregon Democratic Senator Ron Wyden and Texas Republican Representative Lamar Smith have moved to pass a federal law that would limit a state's ability to tax for digital goods. Linthicum writes that this is similar to a law in the 1990s that was created to help dictate who could tax e-commerce sellers. He said it's also based on a Supreme Court decision, which said catalog sellers could only have taxes collected from the state they reside in.

There are those who see it the other way, Linthicum writes, such as Democratic Illinois Senator Dick Durbin, who wants to see a streamlined national sales tax for e-commerce and avoid state and local taxes altogether. He writes that Amazon is helping to work with this bill.

A report by Bloomberg said many companies have gotten behind the federal bill by Wyden and Smith. Mark Loughridge, chief financial officer at IBM, told Bloomberg that the taxes from the cloud could be very significant, as he forecasts IBM's 2015 revenue from the service to be $7 billion.