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Morrison passes tax credit proposal allowing for continued SALT deductions

morrison 052418SPRINGFIELD – The $10,000 cap on state and local tax deductions included in President Trump’s federal tax overhaul threatens states like Illinois. Illinois relies more on the State and Local Tax (SALT) deduction than other states. 

State Senator Julie Morrison (D-Deerfield) passed a proposal out of the Senate this afternoon that would allow Illinois taxpayers to donate up to 90 percent of their state income or property taxes to again itemize one’s federal income tax above the $10,000 cap.

“Capping the SALT deduction punishes states like Illinois that have higher property tax burdens and above-average incomes,” Morrison said. “For a state like Illinois, which contributes much more in federal taxes than we receive back in programs and services, this is an unfair tax policy that must be rectified.” 

House Bill 4237 would create a 90 percent income tax credit for individuals who donate to the state treasury and a 90 percent property tax credit for individuals who donate to a municipality, county or public school’s charitable fund. State and local governments would still receive the full amount of due tax liability from taxpayers, but the money would come from the taxpayer rather than the state treasury or country treasury.

House Bill 4237 passed out of the Senate on a bipartisan 54-1 vote. The legislation now heads back to the House for a concurrence vote before being sent to the governor.

Sen. Julie Morrison

morrison 150

29th Legislative District

Years served: 2013 - Present

Committee assignments: Environment and Conservation; Human Services (Vice-Chairperson); Education; Committee of the Whole; Commerce and Economic Development; Transportation.

Biography: Born in Beardstown; received a bachelor's degree from Knox College; served as supervisor of West Deerfield Township, married to husband Joe with three grown children.

Associated Representative(s): Elaine Nekritz, Scott Drury