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Tax Deduction Changes: Higher Limits for State and Local Taxes

This bill modifies the rules for deducting state and local taxes from federal income. It introduces significantly higher deduction limits for most taxpayers until the end of 2030, potentially leading to lower tax burdens for many households. After this period, the limits will revert to their previous level.
Key points
The State and Local Tax (SALT) deduction limit will increase from $10,000 to $80,000 annually for most taxpayers.
The higher $80,000 limit will be in effect for tax years 2021 through 2030.
Starting January 1, 2031, the SALT deduction limit will revert to $10,000.
The bill also addresses deductions for cooperative housing corporations, potentially impacting their owners.
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Additional Information
Print number: 117_HR_6049
Sponsor: Rep. Smith, Christopher H. [R-NJ-4]
Process start date: 2021-11-18
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

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

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_6049.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-11-18.

What are the main provisions?

Key points include:

  • The State and Local Tax (SALT) deduction limit will increase from $10,000 to $80,000 annually for most taxpayers.
  • The higher $80,000 limit will be in effect for tax years 2021 through 2030.
  • Starting January 1, 2031, the SALT deduction limit will revert to $10,000.
  • The bill also addresses deductions for cooperative housing corporations, potentially impacting their owners.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Smith, Christopher H. [R-NJ-4].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Taxes Real Estate