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Ending the Cap on State and Local Tax Deductions

This bill aims to remove the current limit on the amount of state and local taxes (like property and income taxes) that can be deducted from federal income tax. If passed, this could mean lower federal income tax for individuals paying high state and local taxes by allowing them to deduct more.
Key points
Removes the cap on deducting state and local taxes from federal income tax.
The change applies to tax years beginning after December 31, 2020.
Could lower federal income tax for those with high state and local taxes.
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Additional Information
Print number: 117_HR_613
Sponsor: Rep. Suozzi, Thomas R. [D-NY-3]
Process start date: 2021-01-28