IRS: The proposed regulations targeting SALT limitation workarounds don’t affect the deductibility of business payments. The IRS has clarified that businesses that make business-related payments to charities or government entities for which the taxpayers receive state or local tax (SALT) credits can continue to deduct the payments as business expenses. The deductibility of these payments isn’t affected by the proposed regs that target state-implemented “workarounds” in response to the new limitation under the Tax Cuts and Jobs Act on individual SALT deductions.