Statement from Attorney General Grewal on Trump Administration's Proposed Rule on Charitable Contributions and State and Local Tax Credits

Three months ago, we warned IRS not to go down this road. We’ve already sued the Administration once over the SALT tax cap, and we’ll do it again if we have to.

For years, the IRS has allowed taxpayers to receive credits for the donations they made to state and local governments and nonprofits. And that is a good thing, because these programs encourage taxpayers to give money to natural resource preservation, hospitals, financial aid, schools, domestic violence victims, and more. If tax incentives encourage individuals to donate, that is cause for celebration, not protest.

Today’s proposal undermines all that. There doesn’t appear to be any good basis for the sudden change in policy, except to make it more difficult for states like New Jersey to cope with the backward tax policies the federal government imposed on us last year. I worry that the Treasury Department is so focused on sticking it to the blue states that they’re willing to stick it to the red states, too. That hurts everyone, especially those who donate to charity. We’re ready and willing to fight back.

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