SALT Deduction Fairness Act

II 117TH CONGRESS 1ST SESSION S. 804 To amend the Internal Revenue Code of 1986 to increase the limitation on the amount individuals filing jointly can deduct for certain State and local taxes. IN THE SENATE OF THE UNITED STATES MARCH 17 (legislative day, MARCH 16), 2021 Ms. COLLINS introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to increase the limitation on the amount individuals filing jointly can deduct for certain State and local taxes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘SALT Deduction Fair- 4 ness Act’’. 5 VerDate Sep 11 2014 04:35 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S804.IS S804 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 804 IS SEC. 2. INCREASE IN LIMITATION ON DEDUCTION FOR IN- 1 DIVIDUALS FILING JOINTLY ON STATE AND 2 LOCAL TAXES. 3 (a) IN GENERAL.—Section 164(b)(6)(B) of the Inter- 4 nal Revenue Code of 1986 is amended by striking 5 ‘‘$10,000 ($5,000 in the case of a married individual filing 6 a separate return)’’ and inserting ‘‘$10,000 (twice such 7 amount in the case of a joint return)’’. 8 (b) EFFECTIVE DATE.—The amendment made by 9 this section shall apply to taxable years beginning after 10 December 31, 2020. 11 Æ VerDate Sep 11 2014 04:35 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S804.IS S804 pbinns on DSKJLVW7X2PROD with BILLS