September 28, 2020

Volume X, Number 272

September 28, 2020

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Full SALT Deduction Coming Back?

The House Ways and Means Committee has formally noticed a markup, to take place Wednesday, December 11, 2019, of legislation that addresses temporary restoration of the full deductibility of state and local taxes. For the 2019 tax year, the marriage penalty associated with the $10,000 limitation on state and local tax deductions, which limits married couples filing jointly to $10,000 of SALT deductions, would be eliminated. For tax years 2020 and 2021, the $10,000 limitation would be eliminated entirely for all taxpayers.

To offset the cost of these measures in the Act (named the “Restoring Tax Fairness for States and Localities Act”), a provision would restore the top individual income tax rate from 37% to 39.6%, the level in effect prior to the Tax Cuts and Jobs Act of 2017.

© 2020 Jones Walker LLPNational Law Review, Volume IX, Number 345


About this Author

Bill Backstrom, Tax, estates Attorney, Louisiana, Jones Walker Law FIrm

Bill Backstrom leads the firm's Tax & Estates Practice Group. His practice, for more than 30 years, has focused primarily on state and local tax matters in Louisiana and on a multistate basis. These matters include tax and business planning, utilization of tax and business incentives, audits, government relations, administrative appeals, judicial appeals, and legislative matters.

Mr. Backstrom is a Board Certified Tax Specialist as certified by the Louisiana Board of Legal Specialization. He is a frequent lecturer and author on a variety of tax topics, including all...

Jonathan Katz Federal Tax Attorney Jones Walker

Mr. Katz is a partner in the firm's Tax & Estates Practice Group. Mr. Katz' practice focuses predominately on federal taxation, with a particular focus in federal and state new markets tax credit and historic rehabilitation tax credit transactions. In addition to his tax credit practice, his federal tax practice includes estate planning and administration, federal alcohol excise tax compliance, nonprofit formation and compliance, S corporation compliance, and business organizations.  

In his tax credit practice, Mr. Katz represents institutional investors, project developers, lenders, community development entities (CDEs), and nonprofit organizations in projects that utilize a combination of various tax credits and other financing sources to fund industrial projects, operating businesses, mixed-use, commercial and residential real estate developments, and hotels. He also has significant experience financing public and quasi-public facilities with various state and federal tax incentives. Mr. Katz has represented investors, CDEs, and project developers in more than 60 federal and state new markets tax credit and historic rehabilitation tax credit transactions.