Gov. Murphy Signs Bill to Ease Federal Tax Overhaul's Deduction Cap

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NEW JERSEY -

Governor Phil Murphy signed a bill into law that will help protect New Jersey taxpayers.

On Friday, May 4th, Murphy signed the bill that will soften the effect of the federal tax overhaul's cap on state and local deductions.

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The 2017 federal tax law caps tax deductions at $10,000, but under the new legislation signed Friday, towns and school districts collecting property taxes in the state may set up charitable funds, which taxpayers would then pay property taxes to and get a deductible tax credit in return.

The new federal law does not cap charitable deductions.

A similar bill has been enacted in New York and California is weighing a similar proposal.

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