Bill > HR232

This bill proposes to modify the State and Local Tax (SALT) deduction limitation in the Internal Revenue Code. Currently, taxpayers can deduct up to $10,000 ($5,000 for married individuals filing separately) in state and local taxes on their federal tax returns. The bill would significantly increase this cap, allowing single filers to deduct up to $100,000 and married couples filing jointly to deduct up to $200,000 in state and local taxes. This change would provide substantial tax relief for taxpayers in high-tax states by allowing them to deduct a much larger portion of their state and local tax payments. The new limits would take effect for tax years beginning after December 31, 2024, giving taxpayers and tax authorities time to prepare for the change. The bill is titled the "SALT Fairness and Marriage Penalty Elimination Act," suggesting it aims to address perceived inequities in the current tax deduction system for state and local taxes.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/232/all-info