American Federation for Children Statement on New U.S. Treasury Department Guidance
Today the U.S. Treasury Department issued final regulations addressing the $10,000 state and local tax deduction cap created by the Tax Cuts and Jobs Act. These regulations make clear that individuals and businesses cannot get a charitable deduction for contributions resulting in state tax credits. However, in an effort to protect long-standing tax credit scholarship programs in the states, Treasury offered relief for businesses and certain individual donors to these state-based programs. The American Federation for Children, the nation’s voice for educational choice, released the following statement:
Statement from John Schilling, President of American Federation of Children:
“We are very pleased to see the Treasury Department follow up on the special rules issued last December for corporate contributions with new guidance, in the form of a Notice, allowing individual contributors to tax credit scholarship programs to continue to receive a full deduction on the value of their donations up to $10,000. These contributions are an educational lifeline, providing scholarships to 300,000 students in 18 states that desperately need them. Our team at the American Federation for Children has been working diligently on behalf of these tax credit scholarship families to ensure that final Treasury guidance would mitigate any harm to tax credit scholarship programs, which we believe is fully consistent with the intent of the Tax Cuts and Jobs Act of 2017.”
The guidance is posted here: https://home.treasury.