COLLINSVILLE, Ill. – A measure backed by state Rep. Katie Stuart, D-Edwardsville, designed to provide tax relief to Illinois families in response changes to the federal tax code capping the amount homeowners can deduct for their local property taxes passed out of the Illinois House recently.
“My priority as state Rep. is to protect the interests of the people I represent and the working families in my district, not to give big tax cuts to corporations and the ultra-wealthy, which is exactly what the federal government has done with this new tax plan,” said Stuart. “Our middle class families should be provided tax relief, not forced to foot the bill when the uber-wealthy get tax breaks.”
The new federal tax plan caps a popular deduction known as the State and Local Tax Deduction (SALT) which allows homeowners to deduct the value of their property tax payments from their federal taxes. The federal plan caps the value of the deduction at $10,000, although the average Illinois homeowner claims a SALT deduction of $12,500.
Stuart’s measure, House Bill 4237, allows taxpayers to contribute to the Illinois Education Excellence Fund – a fund designated for public education expenses, including early childhood education, elementary and secondary education, higher education and adult education. Contributions to the fund are eligible for a 100% dollar-for-dollar state income tax deduction and taxpayers may utilize contributions as a federal charitable contribution.
“The capping of the State and Local Tax Deduction on the federal level is devastating for the middle-class families who rely on that federal tax relief year after year,” Stuart added. “State lawmakers can’t dictate federal policy, but we can work together at the state level to enact creative reforms that give Illinois families the tax relief they need. The bipartisan legislation recently approved by the House is one way we can support working families here in the Metro East.”