For CPAs and Financial Advisors
There is a significant new double-tax benefit for pass-through businesses (effective for 2022), allowing a SALT (state & local income tax) limit workaround, coupled with a much more generous PEACH Education tax credit opportunity, per Georgia HB 149.
Georgia’s elected officials have enacted a SALT deduction workaround for pass-through businesses. HB 149 allows your pass-through business to elect to pay state income taxes at the entity level, resulting in significant federal tax savings, as illustrated in this example.
This election also expands the positive impact your business can have through the PEACH Education tax credit program, as your pass-through business can now contribute up to 75% of its annual Georgia income tax liability to PEACH, resulting in a meaningful double-tax benefit of federal tax savings and a Georgia tax credit. See our one-pager entitled Benefit Meets Opportunity for further detail.
HB 149 - Summary of Key Provisions
HB 149 - Georgia Department of Revenue Regulations