Bloomberg Tax
April 7, 2021, 1:51 AM

New York Includes SALT Cap Workaround in Budget Deal

Donna Borak
Donna Borak

A New York state budget deal includes a workaround of the federal limit on state and local tax deductions, the latest sign of blue states’ frustration with the provision.

The $10,000 limit, known as the SALT cap, was created in the 2017 tax law. The deal between New York Gov. Andrew Cuomo (D) and Democratic legislative leaders, announced Tuesday, would allow pass-through businesses to pay taxes at the entity level. The entity-level tax would be offset by a corresponding individual income tax credit, a move also implemented in New Jersey and Connecticut.

  • The provision was part of Cuomo’s initial ...

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