Two States Enact New SALT Cap Workarounds, Six Extend Programs

The US map of pass-through entity tax regimes has changed a lot over the last year, with two states launching programs for the first time and six others extending their statutory sunset dates.

Maine and Washington joined the roster this spring, with new laws offering partnerships and S corporations a workaround for the federal cap on state and local tax deductions known as SALT. Washington state’s program was folded into its new 9.9% levy on residents earning more than $1 million annually.

Meanwhile, Illinois, Utah and Virginia approved legislation in the past year that makes their PTET programs permanent. ...