SALT Fairness and Deficit Reduction Act

Subjects: Taxation

Summary:  <p><strong>SALT Fairness and Deficit Reduction Act </strong> </p> <p>This bill increases the limitation on the tax deduction for state and local taxes to $60,000 (the limit is currently $10,000 for individual taxpayers). The bill also requires an annual inflation adjustment to the increased amount beginning after 2023, and extends through 2032 the period during which the limitation is in effect.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3098 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 3098

To amend the Internal Revenue Code of 1986 to modify the limitation on 
                the deduction for State and local taxes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 5, 2023

  Mr. LaLota 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 deduction for 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 Deficit Reduction 
Act''.

SEC. 2. MODIFICATION OF LIMITATION ON DEDUCTION FOR STATE AND LOCAL 
              TAXES.

    (a) Increase in Limitation.--
            (1) In general.--Section 164(b)(6)(B) of the Internal 
        Revenue Code of 1986 is amended by striking ``$10,000 ($5,000 
        in the case of a married individual filing a separate return)'' 
        and inserting ``$60,000 (twice such amount in the case of a 
        joint return)''.
            (2) Inflation adjustment.--Section 164 of such Code is 
        amended by redesignating subsection (g) as subsection (h) and 
        by inserting after subsection (f) the following new subsection:
    ``(g) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2023, the $60,000 amount in subsection 
        (b)(6)(B) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section (1)(f)(3) of the Internal Revenue Code of 
                1986 for the calendar year in which the taxable year 
                begins by substituting `2022' for `2016' in 
                subparagraph (A)(ii) thereof.
            ``(2) Rounding.--If any amount as adjusted under 
        subparagraph (A) is not a multiple of $50, such amount shall be 
        rounded to the nearest multiple of $50.''.
    (b) Extension of Limitation.--Section 164(b)(6) of such Code is 
amended--
            (1) by striking ``January 1, 2026'' and inserting ``January 
        1, 2033'', and
            (2) by striking ``2025'' in the heading and inserting 
        ``2032''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.
                                 &lt;all&gt;
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