Small businesses in Illinois, who suffer from some of the highest taxes in the nation, stand to benefit from a state senator’s legislation to alter tax deductions. The bill utilizes an IRS-approved method to allow pass-through entities to bypass the $10,000 cap on the State and Local Tax, or SALT, deduction.
Senator Bryant, who is a co-sponsor of the proposal, says it has the potential to help up to 400,000 Illinois business owners save thousands of dollars annually on their federal tax filings. This bill does not cost the State of Illinois a penny as the tax savings are at the federal level.
Currently, 14 other states have passed or are in the process of passing similar legislation.
Senate Bill 2531 passed the Senate unanimously and now heads to the House of Representatives for consideration.