Bloomberg Tax
Jan. 4, 2022, 8:43 PM

Massachusetts SALT Cap Approach Is Straightforward, Tax Pros Say

Sam McQuillan
Sam McQuillan

Massachusetts draft guidance for businesses looking to blunt the burden of the federal SALT deduction cap is “well-written” and leaves little room for confusion, tax practitioners say.

The working draft, issued by the state’s Revenue Department Dec. 30, outlines the election process for pass-through businesses to pay a 5% income tax in exchange for a 90% refundable credit for their owners, unencumbered by the $10,000 federal limit on deductions for state and local taxes.

“Nothing jumps out,” said Timothy Noonan, a partner at Hodgson Russ LLP in New York, who called the guidance cut and dried.

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