The pass-through business alternative tax bill (S-3246/A-4807) is on the Governor’s desk after passing the Assembly and the Senate (for concurrence with Assembly amendments) unanimously on Monday.
This bill allows pass-through businesses like S-corps, LLCs and partnerships to claim federal deductions that other types of businesses currently receive. Deductions for pass through businesses that pay their taxes through the income tax were limited by the Tax Cuts and Jobs Act of 2017; the state bill will allow those deductions to continue while still generating the same revenue for New Jersey.
NJBIA supports this bill because it could potentially save small businesses hundreds of millions of dollars. Creating tax relief for small business and easing the cost of doing business in New Jersey helps create jobs and grow our economy. This bill is also part of Senate President Steve Sweeney’s Path to Progress reforms to make New Jersey more affordable. We urge you to contact Governor Murphy’s office at 609-292-6000 to urge him to sign S-3246 before January 14, 2020 to provide small businesses needed tax relief.