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06/25/2024 01:28 AM
Pennsylvania House of Representatives
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House of Representatives
Session of 2023 - 2024 Regular Session


Posted: June 29, 2023 03:40 PM
From: Representative Nick Pisciottano and Rep. Keith J. Greiner
To: All House members
Subject: Pass through Entity “SALT” Workaround

Changes to the federal tax code in 2017 as part of the Tax Cut and Jobs Act (TCJA) created a new cap on the itemized deduction of State and Local Taxes (SALT) for certain taxpayers. This has led to an unfair treatment of certain taxpayers in Pennsylvania when filing their federal tax returns compared to their peers in surrounding states and has hurt the Commonwealth’s competitiveness in our region.

To rectify this issue, we are proposing that we join 36 other states in creating a state-level solution that allows Pennsylvanian’s the ability to reduce their federal tax liability related to the taxes they pay to local and state jurisdictions. Red and blue states across the nation have created this type of program in response to the changes instituted in the TCJA including: Massachusetts, Alabama, California, Ohio, New Jersey, West Virginia, Maryland, New York, Nebraska, and more.

To be clear, this proposal would not have any impact on the Commonwealth’s tax revenues, nor would it raise taxes on any Pennsylvanian taxpayer.
Please join us in ensuring the Pennsylvania taxpayers are treated fairly and equally to their peers in other states. 

Introduced as HB1584