Where Are We On The New Elective PTE Tax Regime?

Earlier this year, Alabama became one of 19 or so states to enact a pass-through entity tax as a workaround to the so-called "SALT Cap" enacted as part of the Tax Cuts and Jobs Act of 2017, which limits the deductibility of state and local taxes to $10,000 (MFJ) annually.

Republished with permission. This article, "Where Are We On The New Elective PTE Tax Regime?" was published in ASCPA's Connections November-December 2021 Edition.