As CPAs prepare for the high-pressure fall season in 2025, AI tax research and AI tax planning tools offer game-changing efficiency. With 36 states now offering pass‑through entity tax (PTET) elections to circumvent the individual SALT deduction cap, it’s essential to stay ahead. Discover how Hive Tax AI and Hive Tax Planning Assistant streamline research, modeling, and strategy—empowering you to deliver faster, smarter service. Click to learn how Agentic AI in tax can transform your practice.
State PTET: Your Strategic Planning Edge This Fall
- As of mid‑2025, 36 states plus New York City allow S‑corporations and partnerships to elect pass‑through entity tax (PTET) treatment—enabling the entity to pay state income taxes at the entity level and bypass the $10,000 SALT deduction cap for owners.
- The One Big Beautiful Bill (OBBB) raises the individual SALT deduction cap to $40,000 for 2025–2029, with a phasedown for incomes above $500,000—it still doesn’t limit PTET strategies .
- While most of these PTET regimes remain active, a few states (e.g., Illinois, Oregon, Utah, Virginia) have sunset dates at the end of 2025 unless renewed, though some like California have extended their programs.
- For CPAs, modeling PTET benefits versus pitfalls—sourcing differences, NOL treatments, credit availability, and multistate owner mix—is vital. The election isn’t a one-size-fits-all solution.
Why This Matters to CPAs This Fall
- As clients face complex decisions—multi‑state PTET availability, income thresholds, and sunset timelines—granular analysis is critical.
- The fall season demands fast, accurate modeling of whether a PTET election is advantageous by state, entity type, and owner profile.
- Some clients may gain significant federal tax savings, while others, especially in multi-owner entities or expiring-state jurisdictions, might not benefit or may face complications.
3. Enter Hive Tax AI & Hive Tax Planning Assistant
Harnessing AI tools designed specifically for tax professionals gives you a competitive edge.
Hive Tax AI – Research Assistant
- Fast, accurate tax research with a curated database of IRS sources, tax codes, regulations, rulings, and state-specific guidance—perfect for understanding variations in PTET across jurisdictions .
- Features like inline citations, highlighted key text, and tax memo drafting save hours of manual work.
Hive Tax Planning Assistant
- Powered by multiple AI models and agentic workflows, it delivers in‑depth, personalized tax planning (over 100 pre‑loaded strategies), tailored to nuances like PTET election dynamics, multistate allocation, and SALT phase‑downs.
- Built‑in modeling tools help simulate outcomes—entity-level tax cost vs. individual owner benefit, sunset state timing, and more—for strategic decision‑making.
Usability & Security
- Designed for collaborative workflows, Hive AI tools fit seamlessly into your practice, handling research and planning so you can focus on advisory value—plus, your data remains secure with SOC II compliance and PII redaction.
- Pricing is transparent—with trials available; the tax research assistant starts from $109/month or $1,199/year, and the tax planning assistant ranges from $699 to $3,299/year depending on feature tiers.
4. Action Plan: Fall 2025 Readiness Checklist
| Step | Action Item |
| 1. Map State PTET Landscape | Identify client states with active or expiring PTET regimes. |
| 2. Model Tax Outcomes | Use Hive Tax Planning Assistant to simulate PTET elections vs. standard treatment. |
| 3. Compute SALT Interactions | Leverage AI to factor in OBBB’s SALT cap, phase-down thresholds, and entity-vs-individual deduction differences. |
| 4. Prepare Client Memos | Use Hive AI’s memo drafting and inline citations for clear communication. |
| 5. Monitor Legislative Changes | PTET sunset states may extend programs—stay updated and rerun models as needed. |
| 6. Pilot & Scale | Use hive tools for initial clients and scale across your practice for efficiency gains. |
With 36 states now offering PTET elections and the OBBB reshaping SALT deductions, fall 2025 tax season presents both challenges and opportunities. CPAs who leverage AI tax research and AI tax planning tools—like the Hive Tax AI Assistant and Hive Tax Planning Assistant—can navigate PTET strategies confidently, save time, and deliver higher-value client service.
Ready to elevate your fall workflow? See how our AI tax tool AI tax research and AI tax planning tools can elevate your practice?