SCAI, along with other healthcare societies, have joined together to express concern over the inclusion of a provision in H.R. 1 that eliminates the ability of certain pass-through entities, specifically those defined as specified service trades or businesses (SSTBs), to deduct state-level pass-through entity taxes (PTET) on their federal returns. 

Physician practices often use this deduction to offset state taxes and avoid double taxation. The letter urges the Senate to reinstate the PTET deduction in their version of the reconciliation bill, as its removal would impose an additional tax burden, making survival difficult for small practices. A link to the letter can be found here.