IRS proposes eliminating federal deductibility of all state tax credit donations nationally. Learn More

Proposed IRS Regulation

The IRS issued proposed regulation on 8-23-18 that addresses the efforts of some high tax states to circumvent the new SALT (State and Local Tax) deduction cap.  Under the proposal, donations entitled to a state income tax credit could no longer be used for a Federal charitable deduction.  These donations would still be considered as a dollar-for-dollar state income tax credit.  This in no way affects your ability to receive an Arizona state tax credit but would eliminate the federal deduction.  The rule impacts donations made after August 27, 2018.

The public hearing is scheduled for early November. We are hopeful the proposed rule will be amended. We will keep you apprised of further developments.

Thank you for your continued support to make Christian education affordable and accessible so that these students can impact the world.


For more information, The Wall Street Journal has an article with further details.   Wall Street Journal Article, IRS Proposal 8-22-18

Department of Treasury, IRS Proposal IRS Publication, Deductibility 8-24-18