Johnson & Bell Shareholder, Mark D. Belongia, notes that on August 27, Illinois Gov. Pritzker signed SB 2531 into law. The bill allows small business owners across the state the ability to avoid the federal tax cap of $10,000 on their state and local taxes (SALT) deductions. The tax change allows partnerships and S corporations to pay their income tax at the entity-level rate of 4.95% and then claim a credit on their state return.
According to Belongia, small business owners should potentially save thousands of dollars each year because of this new tax law. State leaders project that more than 400,000 small businesses across Illinois could be financially helped by the new tax law.
If you have questions about how this new law might affect your tax filings, please contact Mark D. Belongia. Mr. Belongia addresses the business and finance needs of a number of privately held and family owned businesses in Illinois and across the US.