Amends existing law regarding the treatment of state and local taxation for affected business entities.

This legislation makes technical corrections to legislation enacted in 2021 that provided state and local tax deductions (SALT) for income taxes paid by an Affected Business Entity (ABE) on behalf of its pass-through owners. The 2021 legislation, HB317, was a SALT workaround that allowed ABEs to elect to pay state income taxesonbehalfoftheirowners,makingthosetaxpaymentsfullydeductibleatthefederalleveljustlikebusiness that are not pass through entities. This bill also makes the election available to more taxpayers by including fiscal year taxpayers and ABEs with owners that are trusts or estates. It also allows ABEs with owners who do have Idaho income tax liability to qualify for the election without charging those members a tax they do not owe.