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

Bill: 117-hr-6049
Sponsor: full_name: Rep. Smith, Christopher H. [R-NJ-4]
Introduced: 2021-11-18
Policy area: Taxation
Latest action: action_date: 2021-11-18
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-11-18
action_desc: Introduced in House
text: <p>This bill extends the limitation on the tax deduction for state and local taxes through 2031. It increases the limitation to $80,000 between 2021 and 2030 and reduces it to $10,000 in 2031.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 6049 IN THE HOUSE OF REPRESENTATIVES November 18, 2021 Mr. Smith of New Jersey 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, etc.

1. Modification of limitation on deduction for State and local taxes, etc (a) In general Paragraph (6) of section 164(b) of the Internal Revenue Code of 1986 is amended— (1) by striking 2025 in the heading and inserting 2031 , (2) by striking January 1, 2026 and inserting January 1, 2032 , (3) in subparagraph (A), by inserting or section 216(a)(1) after subsection (a)(1) , (4) in subparagraph (B)— (A) by inserting (and any tax described in any such paragraph taken into account under section 216(a)(1)) after paragraph (5) of this subsection , and (B) 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) in the case of any taxable year beginning after December 31, 2020, and before January 1, 2031, $80,000 ($40,000 in the case of an estate, trust, or married individual filing a separate return), and (ii) in the case of any taxable year beginning after December 31, 2030, and before January 1, 2032, $10,000 ($5,000 in the case of an estate, trust, or married individual filing a separate return). , and (5) by striking the last sentence and inserting the following: In the case of taxes paid during a taxable year beginning before January 1, 2031, the Secretary shall prescribe regulations or other guidance which treat all or a portion of such taxes as paid in a taxable year or years other than the taxable year in which actually paid as necessary or appropriate to prevent the avoidance of the limitations of this paragraph. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2020. (c) No inference The amendments made by paragraphs (3), (4)(A), and (5) shall not be construed to create any inference with respect to the proper application of section 164(b)(6) or section 216(a) with respect to any taxable year beginning before January 1, 2021.