Ptet Election For 2024. On may 11, 2023, governor reynolds signed house file 352 which creates a voluntary election for a partnership or s corporation to be subject to iowa income tax at the entity level. The ct ptet will be optional rather than mandatory and will be an annual election.

The ptet is a deduction taken at the federal level against ordinary income and as a credit at the state level. This permits entities to make a 2022 pte election in 2022, prior to filing an income.