Bailout Bill Extends Deduction for State and Local Sales Taxes
Section 201 of the Emergency Economic Stabilization Act of 2008 extends the life the state and local tax deduction for two years, until January 1, 2010.
Section 201, in all its glory, reads as follows: "(a) IN GENERAL.—Subparagraph (I) of section 164(b)(5) is amended by striking ‘‘January 1, 2008’’ and inserting ‘‘January 1, 2010’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 2007."
