legislation expanded the time period during which victims of sexual abuse can sue their alleged abusers and affiliated organizations. Economy and taxation Federal tax deductions and municipal charitable funds The Murphy administration faces severe fiscal challenges with the reduction of allowable deductions for federal taxes. He supports the creation of municipal charitable funds in lieu of taxation. The state has adopted regulations allowing New Jersey's municipalities, counties, and school districts to accept some real estate taxes as charitable donations to help residents get around a $10,000 limit on state and local tax deductions under the 2018 federal tax overhaul. New Jersey sued the federal government when the IRS dis-allowed the regulation. A federal judge dismissed the case, saying that New Jersey and three other states had not proved that it was unconstitutional. Millionaires tax and sales tax changes Murphy's proposed 2018 budget included various new sources of revenue, a return to sales tax rate of 7% (3.5% on UEZ areas), including ride sharing services and home sharing services, and closing corporate tax loop-holes. Murphy has said he would consider increasing the so-called "millionaires' tax", increasing the rate of taxation for high-income (over $1 million) households in order to increase state revenue. Murphy proposed returning the sales tax 7%, which was reduced to 6.625% in 2018. In June 2018, Murphy signed a law extending reduced sales tax in many of New Jersey's cities. In June 2018, Murphy and the New Jersey Assembly agreed to a last-minute deal in which income over $5 million and corporate tax would be raised, while the sales tax would remain the same. In 2019, Murphy again promoted a "millionaires' tax" as part of the state budget, suggesting that legislation be put before the New Jersey Legislature. In September 2020, Murphy and legislators agreed increase tax on incomes over $1 million, by 2%, and give $500 tax rebate to families earning under $150,000. EDA tax incentives and investigation In January 2018, Governor Phil Murphy signed an executive order to initiate an audit of the tax incentives made to businesses by the New Jersey Economic Development Authority (EDA), saying that oversight of the programs was insufficient and had not been properly regulated. The audit, released in January 2019, found the EDA may have “improperly awarded, miscalculated, overstated and overpaid” tax credits. The task force created to investigate has been challenged in a court case by some of the