Newsom Proposes Expansion of California SALT Cap Workaround

Jan. 10, 2022, 9:41 PM

California Gov. Gavin Newsom (D) wants lawmakers to act immediately to expand a workaround for the federal $10,000 cap on personal state and local tax deductions.

The Democratic governor included the expansion in his proposed budget announced Monday. He is asking lawmakers to enact the changes before the March 15, 2022, tax filing payment deadline for pass-through business entities electing to use the option for the 2021 tax year.

  • The existing workaround allows entities taxed as S corporations or partnerships to elect to pay a 9.3% state income tax, and their owners can claim a credit on ...

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