New Jersey Governor, Phil Murphy, has signed a law that will allow small businesses an avenue for avoiding the federal government's $10,000 cap on state and local taxes. According to the Burlington County Times, named the Pass Through Business Alternative Income Tax Act, the law is designed to assist pass through businesses and partnerships that pay taxes through principals' personal income returns rather than corporate taxes.
“Preserving the ability of thousands of New Jersey small businesses to fully deduct their state income taxes following changes in the federal Tax Cuts and Jobs Act will potentially save hundreds of millions of dollars,” said Michele N. Siekerka, president and CEO of the New Jersey Business & Industry Association. The $10,000 SALT cap limits how much taxpayers can write off from their state income and local property taxes.
To read the full article from the Burlington County Times, click here.