New SALT Cap Rules Would Impact Endow Iowa Credit
February 4, 2019
As part of the Tax Cuts and Jobs Act legislation in 2017, Congress placed a $10,000 cap on itemized deductions for State and Local Taxes (referred to as "SALT" deduction). In response, some states and localities enacted charitable contribution credit programs. On August 27, 2018, the IRS issued a broad-ranging Proposed Rule that impacts not only the new charitable tax credit programs but all charitable credit programs, including Endow Iowa, regardless of when the program had initially been passed.
This new legislation has not yet been enacted, however, if made law, the SALT Cap may affect donors itemizing their taxes and utilizing the Endow Iowa 25% state tax credit. The Community Foundation of Northeast Iowa is monitoring the situation and will keep you updated with new information as it becomes available.
Click here to view the Proposed Rule on the Federal Register. See Section V. Proposed Regulation for information on how this could impact you.