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Colorado on Track for First Retroactive SALT Cap Workaround

May 10, 2022, 8:48 PM

Colorado is on track to become the first state in the country to engineer a workaround to the federal $10,000 cap on deductions for state and local taxes retroactive to 2018 with enabling legislation passing the House on Tuesday.

The House passed the SALT Parity Act, S.B. 22-124, by a vote of 64-1. The bill modifies a previous law permitting pass-through businesses such as partnerships and S corporations to pay their state income taxes at the entity level as a workaround to the $10,000 cap in the 2017 federal tax law. Colorado’s original law was effective for tax ...