Parents of special needs children in South Carolina are urging the IRS to finalize guidance they say would lift a funding roadblock for scholarship programs.
The IRS’s proposed rules, tied to the tax law’s $10,000 cap on state and local tax (SALT) deductions, would give businesses a break by clarifying that pass-through entities and corporations that donate to charitable funds in exchange for a state tax credit can deduct those costs.
That Dec. 13 guidance is crucial to shield South Carolina scholarship programs such as the Educational Credit for Exceptional Needs Children from a drop in donations,