New York’s Federal Tax Deduction Workaround Pays Off, May Not Last

A New York tax credit designed to blunt the hit taxpayers took from the federal tax law’s new cap on state and local deductions was just picking up steam when the Internal Revenue Service dealt it a blow.

The program, which allows taxpayers to receive a tax credit for a charitable gift to the state, brought in $57.2 million in contributions in September and $35.3 million in August, for an average of $46.2 million per month, according to a Bloomberg Tax analysis of data from the state comptroller.

If the program continued at that pace, the state would collect a ...