We are sharing this article by ASAE, of which ANCOR is a member, because of its potential relevance to our members – the 2017 Tax Cuts and Jobs Act contained many provisions that affected employers.
As written by ASAE:
“The Senate yesterday rejected a Democratic bid to overturn IRS regulations prohibiting states from creating charitable funds that taxpayers can contribute to in exchange for a state tax credit.
The workaround gave taxpayers in high-tax states like New York, New Jersey and California a way to get around the $10,000 cap on state and local tax deductions passed as part of the 2017 Tax Cuts and Jobs Act. To address the workaround, the IRS issued rules stating that taxpayers can only claim a charitable deduction for donation amounts that exceed the amount of state tax credits they received.
Senate Minority Leader Chuck Schumer (D-NY) said the SALT deduction cap unfairly penalizes taxpayers in New York and other states that pay high property taxes.
Republicans said Democrats are trying to create state-sanctioned tax shelters for wealthy residents.”