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118TH CONGRESS
1ST SESSION H. R. 3098
To amend the Internal Revenue Code of 1986 to modify the limitation
on the deduction for State and local taxes.
IN THE HOUSE OF REPRESENTATIVES
MAY 5, 2023
Mr. LALOTA 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 modify
the limitation on the deduction for State and local 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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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘SALT Fairness and
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Deficit Reduction Act’’.
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SEC. 2. MODIFICATION OF LIMITATION ON DEDUCTION
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FOR STATE AND LOCAL TAXES.
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(a) INCREASE IN LIMITATION.—
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(1) IN GENERAL.—Section 164(b)(6)(B) of the
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Internal Revenue Code of 1986 is amended by strik-
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ing ‘‘$10,000 ($5,000 in the case of a married indi-
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vidual filing a separate return)’’ and inserting
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‘‘$60,000 (twice such amount in the case of a joint
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return)’’.
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(2) INFLATION ADJUSTMENT.—Section 164 of
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such Code is amended by redesignating subsection
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(g) as subsection (h) and by inserting after sub-
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section (f) the following new subsection:
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‘‘(g) INFLATION ADJUSTMENT.—
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‘‘(1) IN GENERAL.—In the case of any taxable
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year beginning after 2023, the $60,000 amount in
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subsection (b)(6)(B) shall be increased by an
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amount equal to—
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‘‘(A) such dollar amount, multiplied by
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‘‘(B) the cost-of-living adjustment deter-
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mined under section (1)(f)(3) of the Internal
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Revenue Code of 1986 for the calendar year in
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which the taxable year begins by substituting
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‘2022’ for ‘2016’ in subparagraph (A)(ii) there-
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of.
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‘‘(2) ROUNDING.—If any amount as adjusted
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under subparagraph (A) is not a multiple of $50,
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such amount shall be rounded to the nearest mul-
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tiple of $50.’’.
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(b) EXTENSION OF LIMITATION.—Section 164(b)(6)
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of such Code is amended—
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(1) by striking ‘‘January 1, 2026’’ and insert-
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ing ‘‘January 1, 2033’’, and
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(2) by striking ‘‘2025’’ in the heading and in-
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serting ‘‘2032’’.
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(c) EFFECTIVE DATE.—The amendments 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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