The House and Senate each have passed a version of the Tax Cuts and Jobs Act. Both the House bill and the Senate bill eliminate the deduction for state and local income taxes after December 31, 2017.

In light of this, it may be advantageous for some individual taxpayers to pay their 2017 state and local income taxes (otherwise due on January 15 or April 15, 2018) before the end of 2017. For others—such as those subject to the alternative minimum tax—there may be no advantage.

In addition, it is not certain that the state and local income tax deduction will be eliminated. Accordingly, we recommend that individual taxpayers consult with their accountants promptly to determine whether or not they should pay their 2017 state and local income taxes in December.

We will continue to monitor the Tax Cuts and Jobs Act as the House and Senate begin to reconcile their versions of the bill.