The Senate GOP bill extending much of President Donald Trump’s 2017 tax law sets new limits on state strategies to bypass the $10,000 cap on state and local tax deductions, but also opens availability of such workaround strategies to a wider group of business taxpayers than the House bill does.
In a major deviation from the House approach, the Senate Finance Committee proposal drops language cutting professional service providers out of pass-through entity tax regimes, PTETs, found in many states. This distinction would ensure that millions of businesses providing accounting, legal, consulting, medical, and financial services can keep taking the ...