Indiana tax proposal

[kathyc2]

IN has a bill in the works that would allow pass through entities to make an election to pay state tax at the corporate level.  The shareholders would then receive it as a refundable tax credit to use on their individual returns. 

They are saying that state tax paid by S would be a deduction for federal tax.  Since it's an election i.e. voluntary, how could it possibly meet the Sec 162 "necessary" requirement?

Do any other states do this?

[Lee B]

The number of states with a PTET is over 25 now.

Here is a link to a recent analysis of the situation in The Tax Advisor:

https://www.thetaxadviser.com/issues/2022/aug/state-pte-elections.html