States including Connecticut and New York have passed laws allowing residents to donate to a state-created charitable fund instead of paying property taxes. That donation could then be written off as a charitable gift on an individual’s federal taxes and get a state tax credit for some of that. The regulations killed these programs.
Members of Congress have introduced several bills to repeal or raise the cap, which was one of the few provisions in the 2017 GOP law to offset the tax cuts. A House Ways and Means subcommittee held a hearing last month to discuss changes to the SALT cap, but House Democrats are still considering if and when to bring a bill to a vote.
Such legislation might pass the Democratic-controlled House but has little chance of advancing in the Republican-led Senate that has no interest in unwinding parts of the GOP’s signature tax law.
The case is State of New Jersey et al v. Mnuchin et al, 19-cv-06642.
--With assistance from Josh Wingrove.
This article was provided by Bloomberg News.