Topics:
October 16, 2025
Could impact S-CORPS and other small businesses that file as pass-through entities
A provision in Illinois law that permits pass-through businesses to deduct state taxes from their federal tax returns is set to expire at the end of 2025.
The Pass-Through Entity Tax (PTET) provision, commonly referred to as the SALT (State and Local Taxes) workaround, was introduced in 2021 in response to changes in federal tax law.
When passed, however, the Illinois General Assembly inserted a sunset clause into the provision so that it would automatically expire after 2025.
If it’s not extended, Illinois businesses that file their taxes as pass-through entities could see their federal tax liabilities rise in 2026.
The Taxpayers’ Federation of Illinois estimates the SALT workaround saves Illinois businesses approximately $500 million a year.
Contact your legislator today if this impacts your business!
State:
Get to know NFIB
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
Related Articles
Related
June 11, 2026
NFIB Members Bring Small Business Agenda Directly to Washington Policymakers
Small business owners met with Administration and Congressional leaders during 2026 NFIB Fly-In
Read More
Related
June 10, 2026
Minimum Wage Set to Climb in Chicago, Illinois
Minimum wage is rising to $17.05 on July 1 in Chicago, Illinois
Read More
Related
June 10, 2026
NFIB Illinois State Director Reacts to May’s Small Business Optimism Index
NFIB Illinois State Director Noah Finley reacts to below average May Small Business Optimism Report
Read More
Related
June 10, 2026
Arizona Small Businesses Back Tax Conformity Deal
Bipartisan budget agreement delivers needed tax certainty to Main Street Arizonans.
Read More