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Read. Follow. Verify.SALT Fairness and Deficit Reduction Act (H.R. 3098)
Last action · May 5, 2023: Referred to the House Committee on Ways and Means.Sponsor: Nick LaLota
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What This Bill Would Do
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.
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 It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
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.
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.
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- 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.
Frequently Asked Questions
How much can I deduct for state and local taxes under this bill?
When would these changes take effect?
Will the deduction limit stay the same every year?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
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Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
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Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
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
Sources
www.congress.gov
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy60Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz40Current news / social attention level
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