EAs Discuss SALT Tax Workaround and Conformity at 2022 Stern/Mulak Advocacy Week
CSEA has successfully completed another Stern/Mulak Advocacy Week, which took place in lieu of the typical Legislative Day held at the State Capitol. While the format was different and all meetings were virtual, the impact on members of the two key tax policy committees and leaders in the Assembly and Senate was evident.
This year, CSEA Members discussed the following issues with legislators:
- Technical issues associated with the elective pass-through entity tax credit and the need for support for the governor’s proposed fix; and
- The importance of full conformity with the two most recent federal COVID bills and federal Paycheck Protection Program (PPP) rules.
The issue that received the most traction with legislators was conformity with federal PPP rules. A number of legislative staffers expressed their concern with California’s lack of conformity to the federal exclusion of PPP loans for loans made after March 31, 2021, and indicated that they would discuss a possible fix with their office.
Additionally, many legislative offices were aware of the issues surrounding the elective pass-through entity tax credit and indicated their support for a quick resolution. Our Members were sure to highlight the time-sensitive nature of both issues, which will hopefully yield results prior to the March 15 deadline to make an irrevocable election.
We will continue to work with legislators on these issues and many others over the course of the 2022 legislative year, as our advocacy continues to advance effective tax administration policies.
Thank you to Jennifer Tannehill, CSEA’s Legislative Advocate, and to Dessie Stamas of Aaron Read & Associates, who helped facilitate this event. Finally, thank you to all the participants who volunteered their time to help promote CSEA advocacy!