New Jersey has enacted a so-called SALT – State and Local Tax – cap workaround to help pass-through businesses in the state.
The Pass-Through Business Alternative Income Tax Act allows a refundable gross income tax credit for taxpayers earning income from pass-through businesses.
It’s intended to help the state’s small businesses hurt by the $10,000 cap on state and local tax deductions that is part of the federal Tax Cuts and Jobs Act.
