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New Jersey Bolsters SALT Workaround for Pass-Through Entities

Jan. 18, 2022, 11:22 PM

New Jersey businesses can now expect improved perks on a tax break to help ease the pain of a $10,000 federal cap on individuals’ deductions for state and local taxes.

On Tuesday, Democratic Gov. Phil Murphy signed into law a bill (S. 4068) that would allow pass-through entities—partnerships, limited liability companies, and S corporations—additional tax relief under a series of changes made to the previously enacted alternative tax bill in January 2020.

High-tax states have sought workarounds for the past four years even as their federal representatives continue to clamor to remove the SALT cap or at least modify. New ...