diff --git a/changelog/@unreleased/pr-718.v2.yml b/changelog/@unreleased/pr-718.v2.yml
new file mode 100644
index 000000000..ffb575ee6
--- /dev/null
+++ b/changelog/@unreleased/pr-718.v2.yml
@@ -0,0 +1,5 @@
+type: improvement
+improvement:
+  description: The `baseline-idea` plugin now generates configuration more closely aligned with Gradle defaults.
+  links:
+  - https://github.com/palantir/gradle-baseline/pull/718
diff --git a/gradle-baseline-java/src/main/groovy/com/palantir/baseline/plugins/BaselineIdea.groovy b/gradle-baseline-java/src/main/groovy/com/palantir/baseline/plugins/BaselineIdea.groovy
index a0f67f447..4fdd4c731 100644
--- a/gradle-baseline-java/src/main/groovy/com/palantir/baseline/plugins/BaselineIdea.groovy
+++ b/gradle-baseline-java/src/main/groovy/com/palantir/baseline/plugins/BaselineIdea.groovy
@@ -61,7 +61,6 @@ class BaselineIdea extends AbstractBaselinePlugin {
             }
 
             // Configure Idea module
-            addJdkVersion(ideaModuleModel)
             markResourcesDirs(ideaModuleModel)
             moveProjectReferencesToEnd(ideaModuleModel)
         }
@@ -228,29 +227,6 @@ class BaselineIdea extends AbstractBaselinePlugin {
         return base.appendNode(name, attributes + defaults)
     }
 
-    /**
-     * Configures JDK and Java language level of the given IdeaModel according to the sourceCompatibility property.
-     */
-    private void addJdkVersion(IdeaModel ideaModel) {
-        def compileJavaTask = (JavaCompile) project.tasks.findByName('compileJava')
-        if (compileJavaTask) {
-            def javaVersion = compileJavaTask.sourceCompatibility
-            def jdkVersion = 'JDK_' + javaVersion.replaceAll('\\.', '_')
-            project.logger.debug("BaselineIdea: Configuring IDEA Module for Java version: " + javaVersion)
-
-            if (ideaModel.project != null) {
-                ideaModel.project.languageLevel = javaVersion
-            }
-
-            ideaModel.module.jdkName = javaVersion
-            ideaModel.module.iml.withXml {
-                it.asNode().component.find { it.@name == 'NewModuleRootManager' }.@LANGUAGE_LEVEL = jdkVersion
-            }
-        } else {
-            project.logger.debug("BaselineIdea: No Java version found in sourceCompatibility property.")
-        }
-    }
-
     /**
      * By default the Idea plugin marks resources dirs as source dirs.
      */
diff --git a/gradle-baseline-java/src/test/groovy/com/palantir/baseline/BaselineIdeaIntegrationTest.groovy b/gradle-baseline-java/src/test/groovy/com/palantir/baseline/BaselineIdeaIntegrationTest.groovy
index ba624c5e8..763df7bf4 100644
--- a/gradle-baseline-java/src/test/groovy/com/palantir/baseline/BaselineIdeaIntegrationTest.groovy
+++ b/gradle-baseline-java/src/test/groovy/com/palantir/baseline/BaselineIdeaIntegrationTest.groovy
@@ -70,36 +70,6 @@ class BaselineIdeaIntegrationTest extends AbstractPluginTest {
         with('idea').build()
     }
 
-    def 'Modules for subprojects pick up the correct sourceCompatibility'() {
-        when:
-        buildFile << standardBuildFile
-        buildFile << '''
-            sourceCompatibility = 1.6
-        '''.stripIndent()
-        def subproject = multiProject.create(["subproject1", "subproject2"])
-        subproject["subproject1"].buildGradle << '''
-            apply plugin: 'java'
-            apply plugin: 'com.palantir.baseline-idea'
-            sourceCompatibility = 1.7
-        '''.stripIndent()
-        subproject["subproject2"].buildGradle << '''
-            apply plugin: 'java'
-            apply plugin: 'com.palantir.baseline-idea'
-            sourceCompatibility = 1.8
-        '''.stripIndent()
-
-        then:
-        with('idea').build()
-        def rootIml = Files.asCharSource(new File(projectDir, projectDir.name + ".iml"), Charsets.UTF_8).read()
-        rootIml ==~ /(?s).*orderEntry[^\\n]*jdkName="1.6".*/
-        def subproject1Iml = Files.asCharSource(new File(projectDir, "subproject1/subproject1.iml"),
-                Charsets.UTF_8).read()
-        subproject1Iml ==~ /(?s).*orderEntry[^\\n]*jdkName="1.7".*/
-        def subproject2Iml = Files.asCharSource(new File(projectDir, "subproject2/subproject2.iml"),
-                Charsets.UTF_8).read()
-        subproject2Iml ==~ /(?s).*orderEntry[^\\n]*jdkName="1.8".*/
-    }
-
     def 'Idea project has copyright configuration'() {
         when:
         buildFile << standardBuildFile