New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Southwest Gas Holdings Employees and the New California SALT Deduction Boost

Healthcare Provider Update: Healthcare Provider for Southwest Gas Holdings Southwest Gas Holdings provides healthcare benefits through a variety of insurers, primarily utilizing Aetna for their healthcare plans. This partnership enables employees to access a broad network of healthcare services. Expected Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are anticipated to soar, significantly impacting those affiliated with Southwest Gas Holdings. This expected surge stems from factors such as the expiration of enhanced federal subsidies for Affordable Care Act (ACA) plans, which could lead to a staggering increase of over 75% in out-of-pocket premiums for many enrollees. Moreover, aggressive rate hikes from major insurers, combined with rising medical costs, suggest that employees and retirees may face a challenging financial landscape in the coming year. Proactive management of health benefits and planning will be crucial for individuals navigating these increasing costs. Click here to learn more

'Southwest Gas Holdings employees navigating California’s high property taxes should view the new SALT deduction cap as an opportunity to revisit whether itemizing or taking the standard deduction provides the most benefit, and making that comparison now can help them plan ahead with greater clarity.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Southwest Gas Holdings employees and retirees should recognize that the higher SALT deduction cap creates a chance to reevaluate household tax strategies, but the true value will depend on income thresholds, property taxes, and whether itemized deductions outweigh the standard deduction.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How the 2025 spending bill changes the SALT deduction cap for California homeowners.
The impact of Proposition 13, income thresholds, and itemized deductions on potential savings.
What Southwest Gas Holdings employees and retirees should consider when comparing itemized deductions versus the standard deduction.

With the passage of the 2025 One Big Beautiful Bill Act, the cap on state and local tax (SALT) deductions increased, positioning millions of taxpayers nationwide to see relief on their federal tax returns. With some of the largest state and local tax burdens in the nation, California homeowners—including many Southwest Gas Holdings employees—will be especially affected by the shift. Still, it's unclear how much Californians could save.

Before 2017, the entire amount of state and local taxes paid could be subtracted from a taxpayer's federal taxable income. With the 2017 Tax Cuts and Jobs Act, which set a $10,000 deduction cap, this was altered. ¹ Residents in high-tax areas like California, where taxes and property values often exceed national norms, were disproportionately impacted by the cap, creating challenges for Southwest Gas Holdings families with significant home values.

Potential Savings

Although the ceiling is not completely removed by the new 2025 legislation, it is replaced with an income-based cap that permits deductions of up to $40,000, contingent on a taxpayer's earnings. ² The change may give many homeowners a meaningful advantage, but the benefits may differ depending on income, house value, and mortgage balance, according to Kevin Won of Wealth Enhancement's California office, which frequently works with Southwest Gas Holdings employees.

The deduction power that Californians in high-tax districts lost in 2017 could now be partially restored, according to Won. 'But under the new income thresholds, people with higher incomes might still see their SALT benefit phased out.' This is particularly relevant for Southwest Gas Holdings retirees and mid-career employees navigating compensation and property costs in high-value regions.

Redfin data shows the possible savings. Instead of the $10,000 cap, the average California homeowner can now deduct about $26,000 in SALT payments. ³ This could result in a $4,000 decrease in federal taxes at a marginal tax rate of 24%. ³ However, not every taxpayer—including those in the Southwest Gas Holdings workforce—will qualify for the entire benefit.

Unequal Application

A significant factor in the outcome is California's distinct property tax structure, which was influenced by Proposition 13. Long-term homeowners frequently pay lower property taxes than new buyers because Proposition 13 restricts annual increases in property tax assessments. According to Won, 'many Californians will not see the same percentage savings as newer buyers or residents of other states because Proposition 13 keeps long-term homeowners’ property taxes artificially low,' an important distinction for Southwest Gas Holdings employees with decades of homeownership.

The extended deduction may help around three-quarters of California homeowners, according to research. ³ But the only people who are likely to see major tax reductions are those who have large itemized deductions that surpass the standard deduction threshold. For many Southwest Gas Holdings professionals, the standard deduction might still be the better choice depending on their household situation.

Won suggested, 'It's still wise to run the numbers. To find out which approach works best, compare your new itemized deductions to the standard deduction.' Southwest Gas Holdings families approaching retirement may want to evaluate both options carefully.

Understanding the Nuances

In the end, the increased SALT cap gives Californians more flexibility, but the effects will differ greatly. 'It's a positive change, especially for upper-middle-income homeowners,' Won summed up. However, the impact may be minimal for long-term property owners or retirees with lower property taxes and smaller mortgages, a scenario that may apply to Southwest Gas Holdings retirees who have owned property for decades.

There is one important change: taxpayers 65 and older may claim an extra $6,000 tax deduction for tax years 2025–2028, regardless of whether they itemize. ⁴ Phase-outs begin at $75,000 of income for single filers and $150,000 for joint filers. ⁴ Together with the increased SALT cap modification, this senior deduction may expand older homeowners' tax relief—something Southwest Gas Holdings retirees should pay particular attention to.

Find out how California homeowners will be affected by the 2025 increase in the state and local tax (SALT) deduction cap. Typical property owners might save almost $4,000 in federal taxes under the new law, which increases the threshold from $10,000 to an income-based ceiling of up to $40,000. Discover why newer owners in high-tax districts may benefit the most, as well as how eligibility is influenced by Proposition 13, mortgage amounts, and itemized versus standard deductions, which are key considerations for many Southwest Gas Holdings employees.

Featured Video

Articles you may find interesting:

California's recent SALT deduction extension is comparable to reopening a long-blocked road lane. The 2017 limits forced traffic into fewer lanes for years, which reduced mobility and caused congestion. A portion of that lost lane has been reopened by the 2025 amendments, which permit deductions of up to $40,000, potentially reducing thousands of dollars in federal taxes. Similar to the freeway's continued speed limitations and restrictions, Proposition 13, income requirements, and itemized deduction laws limit the amount of benefit that homeowners may actually receive, making it easier for some but not for others—including many in the Southwest Gas Holdings workforce.

Sources:

1. Congress.gov. ' The SALT Cap: Overview and Analysis .' 3 Apr. 2025.

2. Bipartisan Policy Center. “ SALT Deduction Changes in the One Big Beautiful Bill Act ,” by Fredrick Hernandez, 30 July 2025.

3. Redfin News. “ Homeowners in New York, California and Other Coastal States Could Shave Thousands Off Their Annual Tax Bill with SALT Cap Increase ,' by Mark Worley, Asad Khan. 18 Sept. 2025.

4. IRS. ' One, Big, Beautiful Bill provisions: Deduction for Seniors (Sec. 70103) '. 2025.

How does the Southwest Carpenters Pension Plan accommodate changes in benefits for employees who have been affected by the COVID-19 pandemic, and what specific provisions have been implemented to ensure continuity of pension credit during such interruptions? Employees of the Southwest Carpenters Pension Plan are particularly encouraged to review how these provisions may impact their retirement plans and benefits, especially given the unprecedented circumstances of the pandemic.

The Southwest Carpenters Pension Plan accommodated changes due to COVID-19 by extending various deadlines for participants, such as the 12-month deadline to apply for pension credit for periods of disability, and other deadlines regarding claims and appeals. These extensions were applied from March 1, 2020, to a period of up to one year after the original deadline or 60 days after the end of the COVID-19 national emergency, ensuring continuity of pension credit during the pandemic interruptions(Southwest Carpenters Pe…).

What enhancements to pension benefit calculations have been introduced for the years following January 1, 2021, under the Southwest Carpenters Pension Plan, and how do these changes affect participants working more than 1,800 hours? This question emphasizes the implications of increased benefit accrual rates and the actual processes employees must follow to calculate their pensions effectively.

Enhancements to pension benefit calculations effective January 1, 2021, under the Southwest Carpenters Pension Plan include an increase in the monthly benefit accrual rate for participants working 1,800 hours or more. The rate increased from $100 to $200, and for those working more than 1,800 hours, a maximum benefit accrual rate of $244.44 was introduced(Southwest Carpenters Pe…).

In the context of the Southwest Carpenters Pension Plan, could you explain the eligibility criteria for receiving a Service Pension and how employees can accumulate the necessary Pension Credits more quickly? This consideration is vital for members who wish to understand the retirement options available to them and the strategies they might employ in their careers to maximize their benefits under the Southwest Carpenters Pension Plan.

Employees of the Southwest Carpenters Pension Plan are eligible for a Service Pension after earning 30 years of Pension Credit. Additional Service Pension Eligibility Credit was introduced, allowing employees working over 1,800 hours annually to accumulate credits more quickly, up to a maximum of 2,200 hours(Southwest Carpenters Pe…).

How do temporary disability benefits interact with the accumulation of Pension Credits within the Southwest Carpenters Pension Plan? Specifically, employees may have questions about how their working history and service time might be affected should they take leave for health-related reasons, highlighting the intricate balance between pay and benefits during challenging times.

Temporary disability benefits under the Southwest Carpenters Pension Plan allow participants to accumulate Pension Credits during non-working periods if they are on short-term disability or receiving workers' compensation. Pension Credits can be granted for up to 1,200 hours annually, depending on the nature of the disability and employment history(Southwest Carpenters Pe…).

What are the implications of the revised definitions under the Required Beginning Date as specified by the Southwest Carpenters Pension Plan, particularly in compliance with the SECURE Act (Setting Every Community Up for Retirement Enhancement Act)? Employees should understand how these legislative changes affect their retirement strategies, especially in light of penalties for failing to comply with mandatory commencement dates.

The Required Beginning Date for the Southwest Carpenters Pension Plan was revised to comply with the SECURE Act. Participants born on or after July 1, 1949, must begin receiving benefits by April 1 of the calendar year following the year they turn 72. Failure to comply with this could result in a 50% excise tax(Southwest Carpenters Pe…).

How can employees of the Southwest Carpenters Pension Plan navigate the process for applying for pension credit during periods of Temporary Disability, and what specific documentation is required? This inquiry encourages a deeper understanding of protocol surrounding disability applications and the associated benefits that participants are entitled to under the Plan.

Employees applying for pension credit during periods of Temporary Disability must submit a written application within one year of the onset of the disability, and provide documentation such as state-approved short-term disability certification or workers' compensation benefits(Southwest Carpenters Pe…).

What are the implications of the retroactive increases to the Southwest Carpenters Pension Plan benefits aimed at participants who accrued credit during the years 2011 to 2020, and how can affected employees determine their eligibility for said increases? Employees often seek clarification on how historical contributions can manifest in current benefits.

Retroactive increases to the Southwest Carpenters Pension Plan benefits for the years 2011 to 2020 apply to participants who worked at least 1,000 hours in 2020 or under specific collective bargaining agreements. A 50% increase in benefit accrual rates was applied to these years, and eligible employees can determine their eligibility based on their hours worked(Southwest Carpenters Pe…).

What role does the Southwest Carpenters Administrative Office play in assisting employees who have questions regarding modifiability in their pension plans, and what are the best methods for contacting them for assistance? This question highlights the importance of communication within the organization concerning employee inquiries and issue resolution.

The Southwest Carpenters Administrative Office assists employees with questions regarding modifications to their pension plans. Participants can contact them at (213) 386-8590 or (800) 293-1370 for personalized assistance(Southwest Carpenters Pe…).

Can you detail the factors influencing the Benefit Accrual Rate for participants of the Southwest Carpenters Pension Plan for the calendar years after 2021, and how might employees calculate their expected pension benefits? Participants will want to understand the nuances of how their benefits are computed to make informed decisions regarding their retirement planning.

The Benefit Accrual Rate for participants of the Southwest Carpenters Pension Plan after 2021 increased to $200 for 1,800 hours worked, with higher accrual rates for additional hours. Employees can calculate their benefits by multiplying their benefit accrual rate by the applicable benefit factor(Southwest Carpenters Pe…).

In the event of legal actions regarding benefits under ERISA against the Southwest Carpenters Pension Plan, what venue restrictions apply, and what does this mean for participants seeking resolution in disputes? Employees need to be informed of the legal frameworks governing their benefits and understand their rights and the procedures that affect their claims within the Southwest Carpenters Pension Plan.

Legal actions regarding benefits under ERISA against the Southwest Carpenters Pension Plan must be filed in Federal District Court in Los Angeles County, California. This venue restriction defines the jurisdiction where participants must file claims(Southwest Carpenters Pe…).