Pass-Through Entity Tax (PTET) Resource Center

Buried in the "One Big Beautiful Bill Act," the federal budget legislation passed by the U.S. House and under consideration in the Senate, is a measure to prohibit federal deductibility of state and local taxes at the entity level for specified service trades or business (SSTBs). If passed, the bill would:

• Eliminate entity-level SALT deductions for SSTBs, despite Virginia’s PTET framework.
• Force these taxes to count toward the individual SALT cap. 
• Continue offering full deductibility to C corporations — widening the tax gap.

This legislation will undo the progress we made together in Virginia. It will increase the tax burdens on CPA firms and their clients, and it unfairly targets service-based businesses.

📣 Tell the Senate not to eliminate the PTET deduction.

Need to brush up more on the issue? Check out the latest news and articles:

• AICPA comment letter to the Senate
• VSCPA comment letter to House
• AICPA resources and information
• SALT advocacy resources