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HR3098FEDERALin_committee
High Impact

SALT Fairness and Deficit Reduction Act (H.R. 3098)

Original title: SALT Fairness and Deficit Reduction Act

April 30, 2025

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Where This Stands

Introduced
Committee
Floor Vote
Passed
Signed

Currently in_committee. The next step in the legislative lifecycle is Floor Vote.

Last action
Referred to the House Committee on Ways and Means.May 5, 2023
Lead sponsor

Version history

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The Frame

What this does

If passed, this bill would allow taxpayers who to claim up to $60,000 (or $120,000 for joint filers) for state and local taxes paid, up from the current $10,000 limit, starting with the 2023 tax year.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Individual taxpayers

Taxpayers who itemize deductions would be eligible to claim a higher amount of state and local taxes on their federal returns.

Married couples filing jointly

Joint filers would see their SALT deduction cap increased to $120,000.

What changed

Current stage: in_committee.

What's next

Floor Vote.

Summary

This bill proposes to significantly increase the federal tax deduction limit for state and local taxes () paid by individuals. It also extends the duration of this deduction limit through 2032 and adds an annual inflation adjustment to the deduction cap.

Key Facts

  • Increases the annual SALT deduction limit from $10,000 to $60,000 for individual filers.
  • Increases the annual SALT deduction limit for married couples filing jointly to $120,000.
  • Sets the SALT deduction limit for married individuals filing separately at $60,000.
  • Applies these changes retroactively to taxable years beginning after December 31, 2022.
  • Extends the expiration date of the SALT deduction limitation from January 1, 2026, to January 1, 2033.
  • Establishes an annual inflation adjustment for the $60,000 deduction cap starting in 2024.
  • Requires inflation adjustments to be rounded to the nearest $50 increment.
  • Uses the 2022 calendar year as the base year for calculating future cost-of-living adjustments to the deduction limit.

Why It Matters

If passed, this bill would allow taxpayers who to claim up to $60,000 (or $120,000 for joint filers) for state and local taxes paid, up from the current $10,000 limit, starting with the 2023 tax year.

Frequently Asked Questions

How much can I deduct for state and local taxes under this bill?
The bill proposes a limit of $60,000 for individuals and $120,000 for married couples filing jointly.
When would these changes take effect?
The changes would apply to taxable years beginning after December 31, 2022.
Will the deduction limit stay the same every year?
No, the bill includes an inflation adjustment starting in 2024 to increase the limit based on cost-of-living changes.

News Coverage

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Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Extension of SALT Limitation

The bill not only increases the deduction cap but extends the sunset date for the limitation by seven years, from 2026 to 2033.

Connected Entities

personNick LaLotaMember of the House of Representatives who introduced the bill.Map →
organizationCommittee on Ways and MeansThe House committee to which the bill was referred.Map →

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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