The IRS has clarified that state tax credit programs, to which businesses can make payments in exchange for credits against various taxes, aren’t affected by the recent proposed regulations targeting state and local tax (SALT) limit workarounds. That’s true as long as the taxes are deductible under other code sections. These taxes include insurance premium tax, direct pay sales and use tax, corporate income tax and alcohol excise tax. Proposed IRS regs target SALT limit workarounds implemented in some high-tax states. (Information Letter 2018-0030)