SALT Deductibility Act

House Bill

H.R. 430

119th Congress

SALT Deductibility Act

In Committee

Introduced:Jan 15, 2025

Primary Sponsor

Grace Meng

Representative

Democratic

NY-6

Cosponsors

25

Quick Stats

Policy Area

Taxation

Summary

This bill repeals the 10,000 dollar cap on the federal tax deduction for state and local taxes (SALT). The current cap, enacted in 2017 tax reform, applies through 2025. The bill would restore unlimited SALT deductions, primarily benefiting taxpayers in high-tax states like New York, New Jersey, and California who itemize deductions.

Latest Action

Referred to the House Committee on Ways and Means.

AI Summary

Plain-English explanation of this bill

This bill repeals the 10,000 dollar cap on the federal tax deduction for state and local taxes (SALT). The current cap, enacted in 2017 tax reform, applies through 2025. The bill would restore unlimited SALT deductions, primarily benefiting taxpayers in high-tax states like New York, New Jersey, and California who itemize deductions.

Last updated: 1/4/2026

Official Summary

Congressional Research Service summary

Securing Access to Lower Taxes by ensuring Deductibility Act or the SALT Deductibility ActThis bill repeals the limitation on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap).Under current law, a SALT deduction cap of $10,000 ($5,000 for married individuals filing separate federal income tax returns) applies for tax years 2018 through 2025 and expires beginning in 2026.

Key Points

Main provisions of the bill

Repeals 10,000 dollar SALT deduction cap
Current cap expires after 2025 under existing law
Restores unlimited state and local tax deduction
Benefits high-tax state taxpayers who itemize
Retroactive repeal of 2017 tax reform provision

How This Impacts Americans

Potential effects on citizens and communities

The SALT cap has been controversial since enactment, with high-tax state representatives calling it unfair double taxation. Repeal would significantly reduce federal revenue and primarily benefit higher-income taxpayers who itemize deductions in states with high income and property taxes. The bill reflects ongoing tension between federal tax policy and state fiscal autonomy.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

430, 119th Congress (2025). "SALT Deductibility Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-430