Bill > HR430

This bill, known as the SALT Deductibility Act, aims to repeal a limitation on tax deductions for state and local taxes (commonly referred to as SALT deductions). Specifically, the bill would remove paragraph (6) from Section 164(b) of the Internal Revenue Code, which currently restricts the amount of state and local taxes that taxpayers can deduct on their federal income tax returns. The proposed change would allow taxpayers to fully deduct state and local property and income taxes, which was previously limited by the Tax Cuts and Jobs Act of 2017. The amendment would take effect for tax years beginning after December 31, 2024, meaning taxpayers would be able to claim full SALT deductions starting in the 2025 tax year. This change is significant for residents of high-tax states, as it could potentially reduce their federal tax liability by allowing them to deduct more of their state and local tax expenses.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/430/all-info