117 HR 6049 IH: To amend the Internal Revenue Code of 1986 to modify the limitation on the deduction for State and local taxes, etc. U.S. House of Representatives 2021-11-18 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I117th CONGRESS1st SessionH. R. 6049IN THE HOUSE OF REPRESENTATIVESNovember 18, 2021Mr. Smith of New Jersey introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to modify the limitation on the deduction for State and local taxes, etc.

1.

Modification of limitation on deduction for State and local taxes, etc

(a)

In general

Paragraph (6) of section 164(b) of the Internal Revenue Code of 1986 is amended—(1)by striking 2025 in the heading and inserting 2031,(2)by striking January 1, 2026 and inserting January 1, 2032,(3)in subparagraph (A), by inserting or section 216(a)(1) after subsection (a)(1), (4)in subparagraph (B)— (A)by inserting (and any tax described in any such paragraph taken into account under section 216(a)(1)) after paragraph (5) of this subsection, and(B)by striking shall not exceed $10,000 ($5,000 in the case of a married individual filing a separate return). and insertingshall not exceed—(i)in the case of any taxable year beginning after December 31, 2020, and before January 1, 2031, $80,000 ($40,000 in the case of an estate, trust, or married individual filing a separate return), and(ii)in the case of any taxable year beginning after December 31, 2030, and before January 1, 2032, $10,000 ($5,000 in the case of an estate, trust, or married individual filing a separate return)., and(5)by striking the last sentence and inserting the following: In the case of taxes paid during a taxable year beginning before January 1, 2031, the Secretary shall prescribe regulations or other guidance which treat all or a portion of such taxes as paid in a taxable year or years other than the taxable year in which actually paid as necessary or appropriate to prevent the avoidance of the limitations of this paragraph..(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2020.(c)

No inference

The amendments made by paragraphs (3), (4)(A), and (5) shall not be construed to create any inference with respect to the proper application of section 164(b)(6) or section 216(a) with respect to any taxable year beginning before January 1, 2021.