California Lawmakers Approve SALT Cap Tweak for Multistate Firms

Accounting firms and other partnerships would be able to use California’s workaround to the $10,000 federal cap on state and local tax deductions without losing credits for income taxes paid to other states under a bill sent to Gov. Gavin Newsom on Wednesday.

The bill (S.B. 851) is the second in less than a year to fix technicalities that make the elective tax program more difficult to use. Big accounting firms—the Big Four and Grant Thornton LLP—as well as the California Society of Certified Public Accountants, support the bill, saying their inability ...