Financial Services State and Local Tax Newsletter Vol 36: PwC

In this issue

I’m pleased to share the latest edition of our FS SALT Newsletter as we head into the second half of 2025. This quarter has brought significant developments on both the federal and state tax fronts. The recently enacted “One Big Beautiful Bill Act” introduces major changes to the tax landscape—extending key provisions of the 2017 Tax Cuts and Jobs Act and increasing the SALT deduction cap (albeit with income-based limitations). At the state level, we’re seeing active legislative responses, from California’s extension of its PTET regime to evolving apportionment rules and tax rate shifts across a number of jurisdictions. We’ve highlighted the changes most relevant to financial services firms, along with planning insights to help navigate this complex environment.

As we approach the upcoming compliance season and start looking ahead to year-end planning, it’s a good time to reassess your SALT positions. With many states adjusting to federal changes—or preparing to—there’s potential for shifts in compliance requirements, planning opportunities, and risk exposure. Whether you’re evaluating PTET participation, assessing deduction limits, or tracking state conformity efforts, staying proactive will be key. As always, our FS SALT team is here to support you through what’s shaping up to be an impactful close to the year.