Montana Business Entity Tax Will Help Ease SALT Deduction Cap

Montana Gov. Greg Gianforte signed a bill to enact a pass-through entity tax workaround to the $10,000 federal limit on individual taxpayers’ deductions for state and local taxes.

The bill (SB 554) signed by the Republican governor on Friday allows partnerships and other pass-through businesses to pay Montana income tax at the entity level, instead of having their income passed through to individual owners for taxation.

Individuals will get a state tax credit for the amount paid, easing the impact of the federal deduction cap.

• Over 30 states have enacted a kind of pass-through entity tax regime ...