STATE:

Why NFIB

Take Action

Get Support

Stay Informed

Podcast Podcast

Careers Careers

Join Now

Home / News /

Don’t Forget to Consider State’s Pass-Through Entity Elective Tax (PTE-E)

January 17, 2023

Don’t Forget to Consider State’s Pass-Through Entity Elective Tax (PTE-E)

The Oregon Department of Revenue is reminding taxpayers of a program established two years ago that helps alleviate the $10,000 federal cap placed on State and Local Tax Deductions. “The PTE-E tax program was created in July 2021 as a business income tax in response to the $10,000 cap on the federal State and Local Tax (SALT) deduction added in the 2017 federal Tax Cuts and Jobs Act,” according to the department. “Qualifying members of an electing PTE are eligible for a credit equal to 100 percent of the member’s distributive share of the PTE-E tax paid. This is an elective, not mandatory, tax.” For more information, the department is directing taxpayers to this webpage, where then can find the answer to such questions as:

How can I find out more about PTE-E?
How do I make a PTE-E payment?
Can I transfer payments from one entity to another?
Does owner residency factor into the PTE-E tax calculation?

For answers to more question, go to BusinessAlternative.IncomeTax@dor.oregon.gov. Some Risk NFIB supported the federal Tax Cuts and Jobs Act but warned its members that Oregon’s workaround the SALT caps were not without some risk. Shortly after the workaround (Senate Bill 727) passed, NFIB Oregon State Director Anthony Smith said, “It could significantly benefit many NFIB member businesses by effectively reducing their federal tax liability, but it’s not without some risk. The challenge with SB 727 is that it creates a new tax that didn’t exist prior to its passage – and to address a temporary problem (all personal income tax provisions of the TCJA automatically expire at the end of 2025, which is why we have been focused nationally on making the 20% pass-through deduction for QBI permanent). Once a tax is on the books, it rarely goes away. SB 727 passed with an automatic two-year sunset, but we’ll be watching this one closely in future sessions.”

Related NFIB web story.

Topics:

Taxes

State:

Oregon

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

February 21, 2026

NFIB Victory: Bill Incentivizing Litigation Fails

Measure increasing insurance premiums, lawsuits stopped with bipartisan effort

February 20, 2026

Millionaire Tax Proposal Begins House Journey

NFIB rallying opposition to Senate measure that will affect small businesses

February 19, 2026

WATCH: NFIB Arizona Member Testifies Before Ways and Means Committee

NFIB Leadership Council Member Brad Scott testifies in support of HB 2290, which would clarify Arizona’s Transaction Privilege Tax Sourcing Law

February 18, 2026

NFIB Arizona to Lawmakers: Small Businesses Need Tax Certainty Now

“We will continue to urge lawmakers to take action and align Arizona’s income tax code with the small business provisions that are permanent in federal law so …

Don’t Forget to Consider State’s Pass-Through Entity Elective Tax (PTE-E)

Related Articles