118 HR 3098 IH: SALT Fairness and Deficit Reduction Act U.S. House of Representatives 2023-05-05 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.
I118th CONGRESS1st SessionH. R. 3098IN THE HOUSE OF REPRESENTATIVESMay 5, 2023Mr. LaLota 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.
1.
Short title
This Act may be cited as the SALT Fairness and Deficit Reduction Act.
2.
Modification of limitation on deduction for State and local taxes
(a)
Increase in limitation
(1)
In general
Section 164(b)(6)(B) of the Internal Revenue Code of 1986 is amended by striking $10,000 ($5,000 in the case of a married individual filing a separate return) and inserting $60,000 (twice such amount in the case of a joint return).(2)
Inflation adjustment
Section 164 of such Code is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:(g)
Inflation adjustment
(1)
In general
In the case of any taxable year beginning after 2023, the $60,000 amount in subsection (b)(6)(B) shall be increased by an amount equal to—(A)such dollar amount, multiplied by(B)the cost-of-living adjustment determined under section (1)(f)(3) of the Internal Revenue Code of 1986 for the calendar year in which the taxable year begins by substituting 2022 for 2016 in subparagraph (A)(ii) thereof.(2)
Rounding
If any amount as adjusted under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50..(b)
Extension of limitation
Section 164(b)(6) of such Code is amended—(1)by striking January 1, 2026 and inserting January 1, 2033, and(2)by striking 2025 in the heading and inserting 2032.(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2022.