New York and other states try creative accounting
The cap on state and local tax deductions was one of the more controversial provisions of the tax reform.
New York lawmakers have passed a proposal to let state residents skirt the new $10,000 federal cap. Under the proposal, New York taxpayers will be able to make a charitable contribution to new state-run charitable funds to finance education and healthcare. For doing so, they will get a state tax credit worth 85% of their contribution — which effectively reduces their state tax bill by that amount. They could then deduct 100% of their contribution on their federal return since there is no federal cap on charitable deductions. Similar tax credits were introduced by other states.
Whole Story at TFX.