On Monday, Jan. 13, 2020, New Jersey Governor Phil Murphy signed into law the Pass-Through Business Alternative Income Tax Act. This new law allows flow-through businesses in New Jersey to elect to pay income taxes at the entity level instead of at the personal income tax level. Since there is no limit on deductions on the federal level for  state and local taxes paid by businesses, this new law stands to save New Jersey business owners an estimated $400 million annually. Learn more about how this idea became law and what CPAs and business owners need to know to take advantage of it.

NOTE: Edited Jan. 16, 2020, to remove reference to "sole proprietorships."