Colorado DOR Issues Information Concerning Election for Pass-Through Entities Under SALT Parity Act

The Colorado Department of Revenue June 1 issued information on the State and Local Tax (SALT) Parity Act for individual income tax purposes. H.B. 21-1327 and S.B. 22-124 enacted and amended the SALT Parity Act, which allows partnerships and S corporations to make an election to pay Colorado income tax at the entity level, allowing them to claim a federal deduction for state income taxes above the $10,000 deduction limitation that applies to individuals. The information includes that: 1) the act applies to tax years commencing on or after Jan. 1, 2018, but prior to Jan. 1, 2026; 2) amended ...