A federal court dismissed a lawsuit by Connecticut, New York and two other high-income states that sought to overturn a new cap on state and local income tax deductions on federal returns.
The state and local income tax, or SALT, cap was limited to $10,000 during the federal tax overhaul in 2017.
Connecticut, New York, New Jersey and Maryland claimed it discriminated against states with high property values and high property taxes.
The court says the states failed to prove the new tax provision is unconstitutional.
