SALT Cap Workaround Bill Passed by Michigan House

Oct. 14, 2021, 8:48 PM UTC

A bill that could save Michigan pass-through entity owners roughly $200 million off their federal tax bills passed the Michigan House Thursday in a bipartisan push to provide an income tax break to owners of S-corps and LLCs.

The bill (H.B. 5376) would allow owners to pay their state and local taxes (SALT) at the business-entity level instead of individually, creating a workaround so pass-through business owners can avoid the federal $10,000 limit on individuals’ deductions for state and local taxes.

The bill passed 105-2 and is likely headed for final passage next week in the Senate. Gov. ...

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