Today the S Corporation Association submitted comments to the New York Department Taxation and Finance on their proposed SALT fix for partnerships.
Following hard on the heels of the new Connecticut SALT fix, New York asked stakeholders for feedback on their draft to restore the State and local tax deduction for New York partnerships. In its comments, S-Corp made clear its support for the proposal with the following three improvements:
- “Expand the UBT to include S corporations as well as partnerships. There are 410,000 S corporations in New York State, employing more than two million people. These S corporations face the same challenges with the new policy as partnerships and they should be included in the reform.
- Allow for S corporations and other pass-through businesses to elect out of the UBT on an annual basis. There are several reasons why a pass-through business may choose not to be taxed at the entity level. They should be given that flexibility. Making the UBT an election is essential to avoiding unintended and unnecessary hardships.
- Maintain current levels of revenue. The purpose of this reform should be to restore legitimate business deductions to New York’s Main Street community, not to raise new revenues.”
With the New York legislature out for the year, this proposal will have to wait until next year, but the request for comments demonstrates that the state-based fix to the SALT mess continues to have legs in New York and elsewhere.
The effort to restore SALT deductions continues!