Sec. 4. Denial of deduction for State and local taxes of individuals
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/bill/118/s/74/is/section-4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 164(b)(6) of the Internal Revenue Code of 1986 is amended to read as follows: In the case of an individual, no deduction shall be allowed for taxes— described in paragraphs (1), (2), or
(3)of subsection (a), or described in paragraph
(5)of this subsection. Subparagraph
(A)shall not apply to— any foreign taxes described in subsection (a)(3), or any taxes described in paragraph
(1)and
(2)of subsection
(a)which are paid or accrued in carrying on a trade or business or an activity described in section 212. For purposes of subparagraph (A), an amount paid in a taxable year beginning before January 1, 2023, with respect to a State or local income tax imposed for a taxable year beginning after December 31, 2022, shall be treated as paid on the last day of the taxable year for which such tax is so imposed. . The amendment made by this section shall apply to taxable years beginning after December 31, 2022.