Colorado DOR Updates SALT Parity Act Guidance for Partnerships and S Corps

The Colorado Department of Revenue (DOR) published revised guidance regarding the implementation of the SALT Parity Act, which permits partnerships and S corporations to elect to pay Colorado income tax at the entity level. The Act, enacted through House Bill 21-1327 and Senate Bill 22-124, aims to allow these entities to claim a federal deduction for state income taxes above the deduction limitation that applies to individuals, effective for tax years commencing on or after Jan. 1, 2018. [Colo. Dep’t of Revenue, SALT Parity Act, 10/01/25]

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