Rhode Island Budget Proposal Includes SALT Cap Workaround

Rhode Island has proposed a plan that would allow some taxpayers to circumvent the federal cap on the state and local tax deduction—but whether the IRS will allow it remains uncertain.

The House Finance Committee approved a $9.97 billion fiscal year 2020 budget bill (H. 5151A) June 14 that includes a workaround for owners of pass-through entities whose state and local taxes exceed the $10,000 SALT deduction cap in the 2017 federal tax law. The workaround had originally been proposed in February by Rep. K. Joseph Shekarchi (D) in a separate bill (H. 5576) that has ...