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Tax Changes: Lower Capital Gains Taxes and Savings Benefits.

This bill aims to reduce investment income taxes for lower and middle-income individuals, increase retirement savings credits, and partially exempt interest income. These changes could mean more money in the pockets of citizens who invest or save, and influence their financial decisions.
Key points
More Investment Gains Tax-Free: The amount of capital gains that are tax-free is increased, potentially benefiting lower and middle-income investors.
Partial Interest Exclusion: Allows individuals to exclude up to $300 ($600 for joint filers) of certain interest income from taxation, potentially boosting savings returns.
Enhanced Saver's Credit: Increases the maximum contribution amount eligible for the retirement savings credit and raises the credit rate to 50%, encouraging more people to save for retirement.
Net Investment Income Tax Threshold Modified: The income threshold for the net investment income tax is raised, potentially reducing the tax burden for some investors.
State and Local Tax (SALT) Deduction Cap Extended: The limitation on deducting state and local taxes from federal income tax is extended until 2029, which may impact tax liabilities for residents in certain states.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_S_4393
Sponsor: Sen. Grassley, Chuck [R-IA]
Process start date: 2022-06-14
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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

Middle-Class Savings and Investment Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_4393.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-06-14.

What are the main provisions?

Key points include:

  • More Investment Gains Tax-Free: The amount of capital gains that are tax-free is increased, potentially benefiting lower and middle-income investors.
  • Partial Interest Exclusion: Allows individuals to exclude up to $300 ($600 for joint filers) of certain interest income from taxation, potentially boosting savings returns.
  • Enhanced Saver's Credit: Increases the maximum contribution amount eligible for the retirement savings credit and raises the credit rate to 50%, encouraging more people to save for retirement.
  • Net Investment Income Tax Threshold Modified: The income threshold for the net investment income tax is raised, potentially reducing the tax burden for some investors.
  • State and Local Tax (SALT) Deduction Cap Extended: The limitation on deducting state and local taxes from federal income tax is extended until 2029, which may impact tax liabilities for residents in certain states.
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 Sen. Grassley, Chuck [R-IA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Economy