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Connecticut Becomes Third State to Pass Tax Workaround Law

May 31, 2018, 11:03 PM

Connecticut has joined New York and New Jersey in enacting a law giving taxpayers the ability to work around the state and local tax deduction cap contained in the new federal tax law.

Gov. Dannel Malloy (D) signed the law (Public Act No. 18-49) May 31. The law contains two separate options to help the state’s taxpayers offset the impact of the $10,000 SALT deduction cap contained in the 2017 federal tax act (Pub. L. No. 115-97).

The bill creates a new “revenue-neutral” state tax on pass-through entities, which is offset by a corresponding personal income tax ...