SALT Parity Act
| Type | Bill |
|---|---|
| Session | 2022 Regular Session |
| Subjects |
Concerning the authority of a pass-through business entity to elect to pay state income taxes at the entity level.
Bill Summary:
The "SALT Parity Act" was enacted in 2021 and, for income tax years commencing on or after January 1, 2022, it allowed pass-through entities to elect to pay state income tax at the entity level, which allows the entity to claim an unlimited deduction at the federal level for state and local taxes paid. While this election reduces federal taxable income for the pass-through entity, it does not reduce or increase Colorado taxable income under current law based on additions and subtractions (deductions) to the state income tax.
The act converts the state income tax deductions created to keep state revenue neutrality into a tax credit and makes provisions of the "SALT Parity Act" retroactive to January 1, 2018. An S corporation or a partnership must make the retroactive election on or after September 1, 2023, but before July 1, 2024, in a composite amended tax return for all of the years for which the election is made that is filed on behalf of the S corporation or partnership and the electing pass-through entity owners.
(Note: This summary applies to this bill as enacted.)
Related Documents & Information
| Activity | Vote | Documents |
|---|---|---|
| Adopt amendment J.003 | The motion passed without objection. | Vote summary |
| Refer Senate Bill 22-124, as amended, to the Committee of the Whole. | The motion passed on a vote of 9-0. | Vote summary |
| Activity | Vote | Documents |
|---|---|---|
| Adopt amendment L.007 | The motion passed on a vote of 9-4. | Vote summary |
| Refer Senate Bill 22-124, as amended, to the Committee on Appropriations. | The motion passed on a vote of 12-1. | Vote summary |
| Activity | Vote | Documents |
|---|---|---|
| Adopt amendment L.001 (Attachment C) | The motion passed without objection. | Vote summary |
| Adopt amendment L.002 (Attachment D) | The motion passed without objection. | Vote summary |
| Refer Senate Bill 22-124, as amended, to the Committee on Appropriations. | The motion passed on a vote of 7-0. | Vote summary |
| Date | Calendar | Motion | Vote | Vote Document |
|---|---|---|---|---|
| 05/10/2022 | Third Reading | BILL |
59
AYE
6
NO
0
OTHER
|
Vote record |
| 05/10/2022 | Third Reading | AMD (L.009) |
64
AYE
1
NO
0
OTHER
|
Vote record |
| 05/10/2022 | Third Reading | PERM |
62
AYE
3
NO
0
OTHER
|
Vote record |
| Date | Calendar | Motion | Vote | Vote Document |
|---|---|---|---|---|
| 05/10/2022 | House Amendments | REPASS |
35
AYE
0
NO
0
OTHER
|
Vote record |
| 05/10/2022 | House Amendments | CONCUR |
35
AYE
0
NO
0
OTHER
|
Vote record |
| 04/27/2022 | Third Reading | BILL |
33
AYE
0
NO
2
OTHER
|
Vote record |
| Date | Amendment Number | Committee/ Floor Hearing | Status | Documents |
|---|---|---|---|---|
| 05/10/2022 | L.009 | Third Reading | Passed | |
| 05/05/2022 | J.003 | HOU Appropriations | Passed [*] | |
| 05/04/2022 | L.007 | HOU Business Affairs & Labor | Passed [*] | |
| 04/26/2022 | L.006 | Second Reading | Passed [**] | |
| 04/26/2022 | J.002 | SEN Appropriations | Passed [*] | |
| 04/26/2022 | L.003 | SEN Appropriations | Passed [*] | |
| 02/23/2022 | L.002 | SEN Finance | Passed [*] | |
| 02/23/2022 | L.001 | SEN Finance | Passed [*] |
| Date | Location | Action |
|---|---|---|
| 05/16/2022 | Governor | Governor Signed |
| 05/11/2022 | Governor | Sent to the Governor |
| 05/11/2022 | House | Signed by the Speaker of the House |
| 05/11/2022 | Senate | Signed by the President of the Senate |
| 05/10/2022 | Senate | Senate Considered House Amendments - Result was to Concur - Repass |
| 05/10/2022 | House | House Third Reading Passed with Amendments - Floor |
| 05/06/2022 | House | House Third Reading Laid Over Daily - No Amendments |
| 05/05/2022 | House | House Second Reading Special Order - Passed with Amendments - Committee |
| 05/05/2022 | House | House Committee on Appropriations Refer Amended to House Committee of the Whole |
| 05/04/2022 | House | House Committee on Business Affairs & Labor Refer Amended to Appropriations |
| 04/27/2022 | House | Introduced In House - Assigned to Business Affairs & Labor |
| 04/27/2022 | Senate | Senate Third Reading Passed - No Amendments |
| 04/26/2022 | Senate | Senate Second Reading Special Order - Passed with Amendments - Committee, Floor |
| 04/26/2022 | Senate | Senate Committee on Appropriations Refer Amended - Consent Calendar to Senate Committee of the Whole |
| 02/23/2022 | Senate | Senate Committee on Finance Refer Amended to Appropriations |
| 02/03/2022 | Senate | Introduced In Senate - Assigned to Finance |
Prime Sponsor
Sponsor
Co-Sponsor
| Effective Date | Chapter # | Title | Documents |
|---|---|---|---|
| 05/16/2022 | 164 | SALT Parity Act |