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I do not know why they keep passing this information around except to get people to sign up for some subscription to a news letter that would probably not have good information either.
The referenced "cash rebate" program is actually a decade-old tax deduction provision that applied to a small minority of taxpayers and could not fairly be described as a program to provide consumers with "cash rebates on nearly every purchase".
In general, the U.S. income tax code has long allowed taxpayers who itemize their federal income tax returns to deduct any state and local income taxes they pay during the year.
Some state and local governments don't place income taxes on residents and instead fund their operations in other ways (such as higher sales or property taxes), so those who live in such states were disadvantaged by not having a federal tax deduction to offset what they paid to keep their local government services running.
Now you can claim sales tax or income tax paid to states.
It is no big secrete and it is not new. It is on your Schedule A if you itemize.
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