Illinois Valley Times

With tax season underway, state Sen. Win Stoller (R-Germantown) took to social media to explain the benefits of his state and local tax (SALT) deduction law.

The lawmaker on Jan. 21 said in a Facebook video that small business owners in the state may be eligible for a new tax cut on this year’s tax filing which could save them thousands of dollars.

“I wanted to make our small employers aware of an incredible opportunity to save substantial money on their federal taxes,” Stoller said. “My SALT bill comes at a great time with all the huge headwinds facing our small employers these days . . . Most small employers are taxed on their personal returns – their business income is taxed on their personal returns, and there is where it's subject to that $10,000 cap on the state and local tax deduction.”

According to Chicago’s WGN, S-corporations and partnerships can avoid the $10,000 cap on state and local tax deductions on federal taxes under the new S.A.L.T. Deduction Law.

As the measure’s sponsor, Stoller touted it as “an incredible breath of fresh air” in a time of swollen inflation and challenges to labor and supply.

“My bill shifts that income away from the personal return and onto their business return so that they can take full advantage of all that income as a deduction on their federal tax return, which generates substantial savings on their federal taxes,” the senator said on Facebook.

The legislation recently became law with the governor’s signature.

“The Illinois Department of Revenue recently published guidance on how pass-through entities in our state can take advantage of my SALT deduction bill that became law last year,” Stoller said.