The Senate passed its version of the reconciliation bill on Tuesday, July 1, removing the limit on pass-through businesses’ state and local tax (SALT) deductions entirely.
The AICPA sent a letter to Senate leadership expressing strong support of the tax-related provisions included in the latest version of the One Big Beautiful Bill Act passed by the Senate.
The Senate bill retains the ability of all pass-throughs to continue to deduct SALT at the entity level, preserving parity between corporations and pass-through entities (PTETs) and allowing PTEs to take the deductions as intended. See more tax changes.