AAE Advocates Against Proposed Restrictions on PTET Deductions in New York 

The American Association of Endodontists recently submitted a formal letter to New York state leadership urging strong opposition to proposals that would restrict the Pass-Through Entity Tax (PTET) deduction for small healthcare practices. This targeted advocacy effort reflects the AAE’s ongoing commitment to protecting the financial viability of endodontic practices and ensuring continued access to specialized patient care across the state. 

The proposed changes would reduce the PTET credit available to certain pass-through entities, effectively increasing the tax burden on small, service-based businesses like dental and medical practices. As part of its outreach, the AAE emphasized that many endodontic practices rely on these pass-through structures to remain financially sustainable while delivering essential care within their local communities. 

Throughout the letter, the Association highlighted critical concerns that limiting the PTET deduction would result in a form of double taxation. This added financial strain would fall on practices already navigating a perfect storm of rising operational costs, acute workforce shortages, and persistent inflationary pressures. Increased tax burdens could force providers to make difficult decisions, such as reducing staff, limiting service hours, or delaying investments in the new technologies that drive modern endodontic care—all of which ultimately impact the patient experience. 

The AAE also underscored the broader economic implications of the current proposal. Policies that arbitrarily increase costs for small healthcare businesses weaken New York’s overall competitiveness and make it significantly more challenging for practices to grow and hire. Maintaining a stable and supportive tax environment is critical not only to the business of endodontics but to the preservation of patient access and the strength of local economies. 

Through this urgent advocacy effort, the AAE reinforced the importance of state policies that support small healthcare providers and protect the ability of patients to access specialized care. The Association will continue to engage directly with state policymakers to ensure that the needs of both providers and patients remain a top priority in all ongoing legislative and budget discussions.