STATEMENT OF PURPOSE
RS28792 / H0317
This bill relates to federal income tax deductions for state and local taxes (SALT). Currently there is a
$10,000 limitation on the federal deduction for SALT. In 2020, the IRS released Notice 2020-75 approving
the availability and functionality of a SALT limitation workaround for pass-through entities (PTEs). This bill
provides a workaround in the Idaho Code for owners, partners, members, and shareholders in partnerships,
LLCs and S corporations in PTEs by allowing the PTE to elect to pay Idaho tax at the PTE level. This bill
declares an emergency providing for retroactive application to January 1, 2021 for tax reporting purposes.
FISCAL NOTE
This bill will have no fiscal impact to the state General Fund, local units of government, or state tax revenue
as it only changes where a taxpayer reports paying state income tax for the purposes of a federal income tax
deduction.
Contact:
Representative Doug Okuniewicz
(208) 332-1000
Jason B. Kreizenbeck
Ball Ventures, LLC
(208) 342-0777
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 03/09/2021, 10:02 AM