Tax credit scholarship programs in states across the country may suffer collateral damage from an ongoing battle between the Trump Administration and high-tax states over implementation of the new tax law that went into effect this year. On August 23, the Internal Revenue Service (IRS) issued proposed regulations designed to thwart efforts by Connecticut, New Jersey, New York and other states to work around the new $10,000 cap on the state and local tax (SALT) deduction. Those regulations will also apply to tax credit scholarship programs, causing fears that the new policy could result in fewer scholarships for children from low-income families.

Read more about this situation in the September issue of CAPE Outlook.