Yesterday, California became the latest state to adopt our SALT Parity legislation. The reform was included in the state’s budget for the new fiscal year, which is good news for the State’s 600,000 S corporations who, along with California partnerships and LLCs, can now deduct the full amount of their state and local tax (SALT) payments on their federal taxes. The California good news came on the heels of Minnesota Governor Walz signing into law that state’s SALT Parity bill – H.B. 9 — just yesterday afternoon.
More good news to report on the SALT Parity front! Just yesterday, South Carolina Governor Henry McMaster signed our parity legislation into law. As a result, more than 300,000 S corporations and partnerships in the state will have access to some $38 million in annual tax relief. That’s a big deal, especially for businesses that have been hardest hit by the pandemic.
South Carolina now becomes the 13th state to enact our SALT Parity legislation, and joins Georgia, New York, Idaho, Arkansas, Alabama, Maryland, New Jersey, Rhode Island, Louisiana, Oklahoma, …
More good news on the SALT Parity front. New York has become the 10th state to adopt our reform legislation while a similar bill is sitting on the desk of the Georgia Governor awaiting his signature, which would make 11.
Those states join Connecticut, Wisconsin, Oklahoma, Louisiana, Rhode Island, New Jersey, Maryland, Alabama, and Arkansas in passing SALT Parity, while a dozen others are actively considering similar bills. Illinois is new to this list, following yesterday’s unanimous vote in favor of S.B. 2531 in the state Senate. The map below shows the current status of SALT Parity legislation.
We can’t predict victory for the University of Arkansas’s basketball team in March Madness (Seeded 3rd in the South) but the state’s pass-through business owners are already winners, as the state officially became the ninth state to adopt our SALT Parity reforms yesterday. Governor Asa Hutchinson signed House Bill 1209 into law just last night.
The new law allows owners of pass-through businesses – including S corporations and partnerships – to elect to pay their state taxes at the entity level, rather than having the business’s income flow through to the individual owners.
By way of background, deductions on state and …