How to Make a Utah PTET Election: Form TC-75 and the December 31 Deadline (2026)

A Utah architect texts me on December 28 asking if it is too late to make her S-corp's PTET election for the year. Her old CPA mentioned it in passing back in March, then never followed up. She has $310,000 of K-1 income coming through, and at the federal 32% bracket the SALT cap workaround is worth roughly $4,400 in federal tax. The election is still possible. She has three business days. This is the situation Utah's pass-through entity tax election creates for every S-corp and partnership in the state, because the deadline is not March 15. It is the last day of the entity's taxable year. The architect is theoretical, but the deadline is real.

Why December 31 is the date that controls everything

Under Utah Code §59-10-1403.2, a pass-through entity makes its PTET election by electronically filing Form TC-75 (the "SALT Report") and paying the SALT tax on or before the last day of its taxable year. For a calendar-year S-corp or partnership, that is December 31. Any payment received on January 1 or later is refunded and the election fails for the year. There is no extension, no late relief, and no equivalent of the federal Rev. Proc. 2013-30 cure. Utah does not require quarterly estimates for the SALT tax, which is convenient, but it also means the only enforcement mechanism is the postmark on a payment made through the Taxpayer Access Point. The original authority sunset after tax year 2025, then the 2026 General Session extended it through HB 77, effective for tax years beginning on or after January 1, 2026.

Who can elect, and who cannot

The election is available to any pass-through entity with Utah-source income that distributes it to one or more "Final PTETs." A Final PTET is an individual, resident or nonresident, who is a shareholder of an S-corp, a partner of a partnership, a member of a multi-member LLC taxed as a partnership, or a beneficiary of an estate or trust. A Final PTET is never a corporation, partnership, or trust. That is why tiered structures need careful mapping before December 31. Disregarded entities cannot elect. A single-member LLC owned by an individual must first elect S-corp status with Form 2553 if the owner wants access to the Utah workaround, and that election has its own timing rules covered in our S-Corp election deadline guide.

How to file Form TC-75 step by step

Go to tap.utah.gov, the Utah State Tax Commission's TAP portal. You do not need a TAP login to file the SALT Report. From the home screen, choose "File SALT Report." The form asks for the entity's EIN, taxable year, and a list of each Final PTET with their share of "voluntary taxable income," which is the Final PTET's distributive share of Utah-source income for the year. Multiply each Final PTET's voluntary taxable income by Utah's individual income tax rate for the year, which is 4.45% for tax year 2026 after SB 60 took effect. Sum the per-PTET amounts. That total is the SALT tax. Pay it electronically through TAP in the same session. The election is complete only when the payment posts on or before the last day of the taxable year. A filed report without a paid balance is not a valid election.

What the federal benefit actually looks like

The federal benefit is the part everyone is chasing. Under IRS Notice 2020-75, state taxes paid at the entity level by an electing pass-through reduce federal ordinary income on Form 1120-S or Form 1065 and flow through on the K-1, sidestepping the §164(b)(6) SALT cap that limits the individual SALT deduction. The cap rose to $40,400 in 2026 under the One Big Beautiful Bill Act, with a phasedown that starts at $505,000 modified AGI and pulls high earners back toward the old $10,000 cap. The PTET workaround was untouched by OBBBA, so for owners above the cap or above the phaseout, it remains the only way to get the full federal deduction on Utah state tax.

The Utah credit and the addback

On the state side, the Final PTET claims a credit on their TC-40 equal to the SALT tax paid on their behalf, shown on the Utah K-1. The credit is refundable, so a nonresident with no other Utah liability still gets the cash back. Utah requires a corresponding addition on the individual return for the SALT tax that the entity deducted federally on its behalf, which the State Tax Commission documents on its pass-through entity addition page. That addition prevents a double benefit at the state level. It does not reduce the federal benefit, which is the whole point of the workaround. Payment of the SALT tax also reduces the entity's nonresident withholding obligation by the same amount, so out-of-state partners are not double-charged.

Three mistakes I see every December

The first is treating the election like a federal S-corp filing. Federal returns can be extended, amended, and corrected with relief procedures. The Utah SALT election is one shot, paid in full, by year-end. The second is forgetting that the election is irrevocable for the year. Once the payment posts, the entity cannot reduce it, cannot revoke it, and cannot get a refund of the SALT tax itself. Overestimate at your peril. The third is omitting the addback. The pass-through entity addition is required on the individual TC-40, and skipping it is the kind of mismatch the Utah State Tax Commission's matching program is built to catch on a multi-year lookback.

Is it still worth filing after OBBBA?

For Utah owners with modified AGI under $505,000 and modest state and property taxes, the expanded $40,400 cap may already absorb their SALT deduction without the workaround, and the PTET is a wash. For owners above the phaseout, above the cap, or with significant property tax bills competing for the same $40,400, the PTET still moves nondeductible state tax onto the federal return at full value. For most of the S-corp and partnership owners I work with, the math still favors filing the TC-75 by December 31. The federal deduction is real, the mechanics are short, and the only true cost is calendar discipline. Run your own numbers in the EntityIQ S-Corp tax calculator before you commit, and pair this with our broader PTET deduction overview if you also have income from another state.

This article is educational and is not legal or tax advice. The owner described is theoretical. Please consult a Utah CPA or EA before filing the election.