Nearly two years since it was first introduced, S-3246 – Sarlo (D36); Singleton (D7); Oroho (R24); Bucco (R25) / A-4807 Benson (D14); Bucco (R25); Freiman (D16) is poised to land on Governor Murphy’s desk on Monday night.
This bill will allow pass-through entities, which are mostly small businesses like S-corps, LLCs and partnerships, to claim Federal tax deductions that other types of businesses currently receive and were limited to receive following the Tax Cuts and Jobs Act of 2017.
It will allow their previous deductions to continue without the newly imposed limits, while still generating the same revenue for the state.
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.