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Newsom Signs California SALT Tweak to Help Multistate Firms

Sept. 30, 2022, 5:04 PM

Members of national accounting firms and other multistate partnerships can more easily use California’s workaround to the $10,000 federal cap on state and local tax deductions under a bill signed by Gov. Gavin Newsom on Wednesday

The new law (S.B. 851) helps members who aren’t able to claim their credits for taxes paid to other states if they also claim the credit for the elective workaround program. National accounting firms asked for the fix after the California Franchise Tax Board said taxpayers can’t apply what is known as the other state tax credit against a liability offset ...