In the Headlines
January 1, 2025
State and Local Tax Policy to Watch in 2025
Law360
Private Wealth Services attorney Logan Gans was interviewed by Law360 about the must-watch state and local tax (SALT) issues for the new year. He commented on how states might respond to changes at the federal level, including the possible elimination of the $10,000 limit on state and local tax deductions. Enacted as part of the 2017 Tax Cuts and Jobs Act (TCJA), the SALT cap is set to expire at the end of 2025, along with some provisions at the state level enacting pass-through entity taxes to bypass the cap. Mr. Gans said if Congress allows the cap to expire — or reduces direct payments to states and cuts spending on entitlements — states could look to increase income taxes to fill in the gaps.