For some time, the MuniBlog has been following the change in federal tax law regarding a cap on State and Local Tax (SALT) deductions. While litigation regarding the cap is ongoing, the Internal Revenue Service (IRS) recently proposed an amendment to limit charitable contributions which convert to a property tax credit made after August 27, 2018. This proposal would disallow states’ attempts to work around the $10,000 cap on SALT deductions.
MuniBlog will continue to follow the litigation as well as any changes in the proposed amendment.