To amend the Internal Revenue Code of 1986 to increase the limitation on the amount individuals can deduct for certain State and local taxes.

Bill: 116-hr-1757
Sponsor: full_name: Rep. Underwood, Lauren [D-IL-14]
Introduced: 2019-03-14
Policy area: Taxation
Subjects: Income tax deductions

Inflation and prices

Property tax

Sales and excise taxes

State and local taxation
Latest action: action_date: 2019-03-14
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2019-03-14
action_desc: Introduced in House
text: <p>This bill increases the limit on individual income tax deductions for certain state and local taxes, which is currently $10,000 per year ($5,000 for a married taxpayer filing a separate return). The bill increases the limit to $15,000 (twice the amount in the case of a joint return) and requires the limit to be adjusted for inflation after 2019.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 1757 IN THE HOUSE OF REPRESENTATIVES March 14, 2019 Ms. Underwood (for herself and Mr. Casten of Illinois ) 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 increase the limitation on the amount individuals can deduct for certain State and local taxes.

1. Increase in 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 $10,000 ($5,000 in the case of a married individual filing a separate return) and inserting $15,000 (twice such amount in the case of a joint return) . (b) Inflation adjustment Section 164(b) of such Code is amended by adding at the end the following new paragraph: (7) Inflation adjustment In the case of any taxable year beginning after December 31, 2019, the $15,000 amount in paragraph (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) for the calendar year in which the taxable year begins, determined by substituting calendar year 2018 for calendar year 2016 in subparagraph (A)(ii) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $100, such amount shall be rounded to the next lowest multiple of $100. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2018.