Skip to content

SALT Cap Workaround Passes the Senate

SALT Cap Workaround Passes the Senate

March 8, 2023 Last Edit: June 5, 2025

SALT Cap Workaround Passes the Senate

S.45, which would create an elective pass-through entity tax that would help Vermont business owners save on their federal taxes, passed the Senate the week of March 3, 2023, by voice vote. NFIB has consistently supported this pass-through and thanks Senator Thomas Chittenden, D-Chittenden Southeast District, for sponsoring the bill and ushering it through his committee with unanimous support.

SALT was capped as a punitive measure to hurt blue states, such as Vermont, in the 2017 Tax Cuts and Jobs Act. Since then, a continually growing list of other states has enacted an IRS blessed SALT cap workaround to rebuff this partisan, politically charged policy. Vermont would send millions in tax dollars to Washington that these other states wouldn’t, putting Vermont at a competitive disadvantage. The strategy is to draw down as much federal money as possible and not send money to the federal government, keeping it here in Vermont and being put to work to help Vermonters.

The bill now goes to the Vermont House of Representatives, where it may be met with less support than it has had in the Senate.

 

Get to know NFIB

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

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

Clothes on a rack at a Retail store
July 14, 2025
NFIB: Alabama Sales Tax Holiday Could Be a Boon to Main Street…
This year’s tax-free weekend is July 18-20.
Read More
July 14, 2025
Reminder: 2025 Ohio Sales Tax Holiday Extension
Ohio’s sales tax weekend extends to two full weeks in August
Read More
July 11, 2025
Vermont Job Posting Transparency Law Takes Effect
As of 7/1/2025, most job postings require a good faith pay range.
Read More
July 10, 2025
Historic Legislation Becomes Law and Stops Massive Tax Hike on…
The One Big Beautiful Bill Act is signed into law, permanently extending th…
Read More

© 2001 - 2025 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility