Bill Details
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This bill would raise the amount people can deduct on their federal taxes for certain state and local taxes. Right now, the deduction is limited to $10,000 for most filers and $5,000 for married people filing separately. The bill would increase that limit to $100,000 for most individuals and $200,000 for joint returns, which would let many taxpayers deduct more of these taxes and could lower their federal tax bills.
- It changes the current deduction cap for state and local taxes on federal tax returns.
- For a joint return, the deduction limit would be $200,000 instead of the current $10,000 cap.
- For other taxpayers, the deduction limit would be $100,000 instead of the current $10,000 cap.
- The change would apply to tax years beginning after December 31, 2024.
Official Summaries
SALT Fairness and Marriage Penalty Elimination Act
This bill increases the limitation on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap) to $100,000 ($200,000 for married individuals filing a joint federal income tax return).
Under current law, the SALT deduction cap is $10,000 ($5,000 for married individuals filing separate federal income tax returns).
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 232 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 232
To amend the Internal Revenue Code of 1986 to modify the limitation on
the amount individuals can deduct for certain State and local taxes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 7, 2025
Mr. Lawler introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify the limitation on
the amount individuals can deduct for certain State and local taxes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``SALT Fairness and Marriage Penalty
Elimination Act''.
SEC. 2. MODIFICATION OF LIMITATION ON DEDUCTION FOR CERTAIN STATE AND
LOCAL TAXES OF INDIVIDUALS.
(a) In General.--Section 164(b)(6)(B) of the Internal Revenue Code
of 1986 is amended by striking ``shall not exceed $10,000 ($5,000 in
the case of a married individual filing a separate return).'' and
inserting ``shall not exceed--
``(i) except as provided in clause (ii),
$100,000, and
``(ii) in the case of a joint return,
$200,000.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2024.
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