Rhode Island Governor Approves SALT Deduction Cap Workaround

July 5, 2019, 5:52 PM

Rhode Island’s $9.9 billion state budget includes a provision that may help businesses circumvent the state and local tax deduction cap contained in the 2017 federal tax law.

Gov. Gina Raimondo (D) signed the state’s fiscal year 2020 state budget bill (H.5151A) into law July 5.

Approved by the state legislature June 27, the bill includes a workaround for owners of pass-through entities whose state and local taxes exceed the $10,000 SALT deduction cap. The provision would set a 5.99% levy on pass-through entities, which report their income on owners’ personal returns. Pass-through owners would ...

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