The Senate made adjustments in the text of the massive One Big Beautiful Bill to preserve the state and local tax deduction for pass-through entities such as accounting firms and law firms, eliminating the provision in the House version of the bill curbing the ability of such businesses to avoid the SALT cap.
The American Institute of CPAs has been
AICPA president and CEO Mark Koziel praised the move. “We applaud the commitment of members of Congress and the administration to ensure that the budget reconciliation bill continues to preserve parity between C corporations and pass-through entities so that all businesses can continue to grow the economy and invest in their communities,” he said in a statement Saturday. “Earlier versions of the legislation increased tax burdens for pass-through businesses across the country by imposing new limits on their ability to deduct state and local taxes. We are incredibly grateful to the Senate Finance Committee and members of the Senate and the House for their diligent work to reject new tax increases on pass-through entities and support the business community.”
He hopes to see similar changes made once the bill moves to the House.
“As the reconciliation process continues, we urge members of the Senate and the House of Representatives to adopt the Senate’s position regarding pass-through entities and support the removal of new limitations of the SALT deduction,” Koziel added. “As has been expressed by many of our partners in state CPA societies and other professional service businesses, imposing a new limit on the deduction of state and local taxes for pass-through businesses creates unnecessary complexity and disparity in the tax code and is harmful to millions of businesses nationwide. We are appreciative that so many members of the House and Senate have recognized this and encourage Congress continue supporting businesses and local economies.”
Credit: Source link
