When the Tax Cuts and Jobs Act was enacted at the end of last
year, the aggregate deduction for state and local taxes was limited
to $10,000 ($5,000 for married persons filing separately).
Taxpayers residing in states with high income and/or property
taxes, such as Connecticut, were most affected by the
limitation.
On May 31, in an effort to provide relief to owners of
Connecticut businesses operating as pass-through entities (i.e.,
partnerships, limited partnerships, limited liability partnerships,
limited liability companies [LLCs] or S corporations), Public Act
18-49 was signed into law. The act does not apply to
publicly-traded partnerships, sole proprietorships, or
single-member LLCs that are disregarded entities for tax purposes.
The act provides in part for a new income tax on most pass-through
businesses at the entity level while also providing for a
corresponding credit applied to the pass-through member's
applicable personal income tax or corporate business
