Oregon Legislature Extends SALT Parity
Oregon lawmakers have approved legislation, Senate Bill 1510, that would extend, through Dec. 31, 2027, the state’s passthrough entity workaround to the federal cap on state and local tax deductions (SALT). The Oregon income tax generally conforms to the federal tax, but the bill would:
- Reject alignment with the new federal law regarding “net controlled foreign corporation tested income,” or NCTI;
- Preserve Oregon’s current treatment of that income by continuing to apply an 80 percent dividends-received deduction; and
- Let entity-level tax overpayments be credited as estimated payments for the following year.
Read more about the Oregon bill at this link.
The bill is now headed to Gov. Tina Kotek (D-OR) for her signature.
Since 2018, the Main Street Employers coalition, which the Metals Service Center Institute is part of, has led advocacy efforts to restore the SALT deduction for pass-through businesses. Three dozen states have enacted model legislation to date, resulting in more than $15 billion in annual savings. SALT Parity measures are being actively considered in many more. Learn more at this link.