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Virginia Unlocks Millions in SALT Parity Relief

With Tax Day just around the corner, we have some good news that should help ease the pain. Yesterday, Governor Glenn Youngkin signed HB 1121 into law, making Virginia the 25th state to adopt our SALT Parity reform. As a result, more than 200,000 Virginia S corporations and partnerships will have access to about $160 million in annual tax relief, starting with their 2021 returns.

As S-CORP readers know, the new cap on state and local tax (SALT) deductions does not apply evenly to all businesses.  C corporations may continue to deduct the full value of their SALT as a

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2022-04-12T17:11:09+00:00April 12, 2022|

SALT Parity Offers Massive Savings for Main Street

With the Build Back Better Act stalled in the Senate, states should resume efforts to enact our SALT Parity legislation this year.  The SALT cap appears here to stay, at least through 2025, and the savings potentials for family businesses are substantial.

How substantial?  As reported by Richard Rubin in the Wall Street Journal, new numbers out of New York show that that S corporations and partnerships paid $11 billion under the new Pass-Through Entity (PTE) tax the state adopted back in April, translating into between $3 and $4 billion in federal tax savings.  $4 billion!  That’s just one

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2022-01-14T17:24:47+00:00January 14, 2022|

S-Corp Joins SALT Parity Panel Discussion

Last week, S-Corp President Brian Reardon joined a panel discussion on our SALT Parity efforts. Hosted by Tax Analysts, the webinar sought to explain why these laws are necessary, who benefits, and what effect current proposals in Congress might have on them.

For those new to the issue, the SALT deduction cap imposed by the Tax Cuts and Jobs Act put S corporations and partnerships at a competitive disadvantage – C corporations could continue to fully deduct their SALT as a business expense while pass-through business owners were subject

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2021-12-13T22:01:00+00:00December 13, 2021|

California, Minnesota Join the SALT Parity Parade

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.

By our rough estimates, that means some $1.7 billion in annual tax relief for businesses

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2021-07-02T16:51:32+00:00July 2, 2021|

SALT Parity Bills Hit Governor’s Desk in CO and IL

Our SALT Parity reform bills continue to roll across the country. Since 2018, 13 states have adopted our parity legislation. Colorado and Illinois, whose legislatures recently approved similar bills, are just a Governor’s signature away from becoming states 14 and 15 on that list.
SALT Parity enables S corporations and partnerships to deduct the full amount of their state and local tax (SALT) payments, just like C corporations can. If enacted across the country, we estimate that over 3 million pass-through businesses would receive some $6 billion in annual tax relief, all at no cost to the

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2021-06-11T15:54:15+00:00June 11, 2021|