F. For which tax year is the flow-through entity tax effective?

The flow-through entity tax is retroactive to tax years beginning on and after January 1, 2021. The tax will remain in effect for all tax years beginning after January 1, 2021; however, the continued levy of the tax is contingent upon the existence of the federal state and local tax (SALT) deduction limitation codified within IRC 164(b)(6)(B). The flow-through entity tax is only effective for tax years of a flow-through entity ending with or within a federal taxable year for which the SALT deduction limitation under IRC 164(b)(6)(B) is in effect for individuals. If the SALT deduction limitation is not in effect for a federal taxable year, then the flow-through entity tax will not be levied for that flow-through entity tax year ending with or within that federal taxable year, regardless of any election to pay the tax. In the event this provision is triggered, additional guidance and instruction will be provided by the Department.