Bloomberg Tax
March 10, 2023, 8:23 PM

West Virginia to Join States With SALT Cap Workarounds

Angélica Serrano-Román
Angélica Serrano-Román
Reporter

West Virginia would soon enact a pass-through entity tax workaround to the federal state and local tax deduction cap, under a bill heading to the desk of Gov. Jim Justice (R).

The measure, SB 151, would allow partnerships and other pass-through businesses to pay West Virginia income tax at the entity level, instead of having their income passed through to individual owners for taxation. The individuals would get a state tax credit for the amount paid, thus easing the impact of the $10,000 federal limit on deductions for state and local taxes.