Adds to existing law to establish provisions regarding the affected business entity tax.

This bill relates to federal income tax deductions for state and local taxes (SALT). Currently there is a $10,000 limitation on the federal deduction for SALT. In 2020, the IRS released Notice 2020-75 approving the availability and functionality of a SALT limitation workaround for pass-through entities (PTEs). This bill provides a workaround in the Idaho Code for owners, partners, members, and shareholders in partnerships, LLCs and S corporations in PTEs by allowing the PTE to elect to pay Idaho tax at the PTE level. This bill declares an emergency providing for retroactive application to January 1, 2021 for tax reporting purposes.