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As the new year begins, an item the state tax team needs to consider actively is the Pass-Through Entity Tax, also known as PTE.  It allows Partnerships or S Corporations the option to be taxed at the entity level for state income tax purposes.  Once elected, partners or shareholders can claim a credit on their state individual income tax returns for their share of the pass-through entity tax paid by the entity.

To date, a few states have already enacted PTE as of TY2021.  There is also more than a dozen of states now allowing PTE starting TY2022.  Review the article Which jurisdictions will Corptax® support for the Pass-Through Entity Tax for Tax Year 2022? for which jurisdictions Corptax® will add support for the Pass-Through Entity Tax for Tax Year 2022.