What This Bill Does
This bill changes federal tax law by removing a limitation on deductions for state and local taxes. It specifically removes a rule that currently limits how much people can deduct for state and local property taxes and income taxes on their federal tax returns.
Who It Affects
Taxpayers who pay state and local property taxes and state and local income taxes.
Key Provisions
• The bill removes paragraph (6) from Section 164(b) of the Internal Revenue Code, which contains the current limitation on deductions for state and local taxes (Sec. 2).
What Changes
If this bill becomes law, taxpayers will no longer be subject to the limitation on deductions for state and local property and income taxes that currently exists under federal tax law. The specific details of what that limitation allows or prohibits are not explained in this bill text.
Important Definitions
None defined.
Effective Date
The change applies to tax years beginning after December 31, 2022 (Sec. 2).
I
118TH CONGRESS
1ST SESSION H. R. 2555
To amend the Internal Revenue Code of 1986 to repeal the limitation on
the deduction for certain taxes, including State and local property and
income taxes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 10, 2023
Mr. GARBARINO (for himself, Mr. GOTTHEIMER, Ms. ESHOO, Mrs. KIM of
California, Mr. SCHNEIDER, Mr. SMITH of New Jersey, Mr. MENENDEZ,
Mr. LAWLER, Mr. D’ESPOSITO, Mr. MOLINARO, Mr. RYAN, Mr. KEAN of
New Jersey, Mr. SWALWELL, Ms. MENG, Mr. MORELLE, Mr. SHERMAN,
Mr. CASTEN, Mr. COURTNEY, Mr. PHILLIPS, Mr. TONKO, Mr. QUIGLEY,
Ms. LOFGREN, Ms. MCCOLLUM, Mr. CARBAJAL, Mrs. WATSON COLE-
MAN, Mr. AUCHINCLOSS, Mr. CONNOLLY, Mr. KRISHNAMOORTHI, Mr.
PALLONE, Ms. CRAIG, Mr. FOSTER, Ms. BONAMICI, Ms. SA´NCHEZ, Ms.
SHERRILL, Mr. KIM of New Jersey, Mr. LALOTA, Mr. LEVIN, Mr.
RASKIN, Mr. HUFFMAN, Mr. DAVIS of Illinois, Mr. GOMEZ, Ms. CHU, Ms.
NORTON, Mr. PANETTA, Ms. BROWNLEY, and Mr. NADLER) introduced
the following bill; which was referred to the Committee on Ways and
Means
A BILL
To amend the Internal Revenue Code of 1986 to repeal
the limitation on the deduction for certain taxes, includ-
ing State and local property and income taxes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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•HR 2555 IH
SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Securing Access to
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Lower Taxes by ensuring Deductibility Act’’ or the
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‘‘SALT Deductibility Act’’.
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SEC. 2. REPEAL OF LIMITATION ON DEDUCTION FOR STATE
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AND LOCAL, ETC. TAXES.
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(a) IN GENERAL.—Section 164(b) of the Internal
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Revenue Code of 1986 is amended by striking paragraph
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(6).
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(b) EFFECTIVE DATE.—The amendment made by
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this section shall apply to taxable years beginning after
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December 31, 2022.
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Æ
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