Tri-City Regional Chamber Urges Congress to Protect Key Business Tax Deduction

Tri-City Regional Chamber Urges Congress to Protect Key Business Tax Deduction

The Tri-City Regional Chamber of Commerce has joined a broad coalition of business organizations urging Congress to preserve the federal deduction for state and local business taxes, commonly referred to as the B-SALT deduction. The Chamber is advocating for local businesses, emphasizing that changes to this long-standing tax provision could lead to substantial financial burdens for employers throughout the Tri-Cities and beyond.

The B-SALT deduction allows companies to deduct mandatory state and local taxes as part of their ordinary business expenses. However, recent proposals in Congress suggest placing caps on or eliminating this deduction entirely. If enacted, these changes could generate more than $600 billion in additional taxes over the next decade, affecting a wide range of business entities, including sole proprietors, partnerships, corporations, and commercial property owners.

In partnership with other regional and national business groups, the chamber highlighted that deduction has been a critical component of the federal tax code for decades. This helps ensure that businesses are not taxed twice on the same income and supports broader goals of economic stability and growth.

The coalition's message to lawmakers is clear: eliminating the B-SALT deduction would roll back important progress made through the 2017 Tax Cuts and Jobs Act, which contributed to wage increases, job creation, and expanded investment in local communities. Maintaining deductions is vital for preserving a fair and competitive tax environment that supports economic development and small business sustainability.
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The Tri-City Regional Chamber will continue advocating on behalf of its members to protect policies that promote business growth and reduce unnecessary tax burdens.

You can review the letter the Chamber sent here.