Urgent: PTE SALT deduction in jeopardy
Share concerns with your elected officials
May 21, 2025 | Geno Fragnito
The Pass-Through Entity (PTE) SALT deduction is in jeopardy.
This week, the House Ways & Means Committee released tax legislation that increases taxes by removing the SALT deduction on partners/owners of many service-based businesses, such as accounting firms. The proposal also affects many pass-through entities for which you may advise or work, including those of dentists, doctors, lawyers and pharmacists.
Under this proposal, the deduction would remain in place for C Corporations, creating a disadvantage for partnerships and S Corporations.
Our congressional delegation needs to hear from you why this is a bad tax policy.
A call to action
CPAs speak for thousands of businesses, and lawmakers respect your opinion. We encourage you to reach out to your member of Congress and Minnesota U.S. senators to communicate why this proposal is harmful and unfair to small businesses.
Find your federal representatives
You must include your address to submit a message to your congressperson. You may submit a comment based on your home and/or business location, should they be in different districts.
The AICPA offered this message for constituents to share with Congress members:
"I urge you to oppose provisions included in the House Ways and Means Committee's tax reform legislation that unfairly target the ability of service businesses structured as pass-through entities to deduct their state and local taxes (SALT) from their federal tax liability while providing no such limit to other businesses. This legislation effectively discriminates against particular pass-through businesses by indirectly raising taxes on those entities that are considered the backbone of the American economy. These provisions greatly widen the disparity in treatment between pass-through entities and other kinds of businesses, and I strongly urge you to oppose these provisions of the bill."
Please reach me at
govrelations@mncpa.org if you have any questions or comments.
Topics: Legislative & Government Affairs, Taxation-Business
Geno Fragnito
Geno Fragnito is the MNCPA government relations director, advocating on behalf of the CPA profession. His days consist of last-minute meeting changes, building relationships with lawmakers, helping CPAs navigate state government, and putting in more than 15,000 steps per day walking the halls of the Capitol. Geno unwinds with a little golf and traveling with his family. If he weren’t a lobbyist, Geno would perfect his cast and be a professional fisherman. Geno can be reached at 952-885-5550 or gfragnito@mncpa.org.
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