Section 1 Short title
This Act may be cited as the “SALT Fairness and Deficit Reduction Act”.
SALT Fairness and Deficit Reduction Act
A BILL
To amend the Internal Revenue Code of 1986 to modify the limitation on the deduction for State and local taxes.
Sec. 2 Modification of limitation on deduction for State and local taxes
Increase in limitation—
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)”.
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.”
Extension of limitation— Section 164(b)(6) of such Code is amended—
by striking “January 1, 2026” and inserting “January 1, 2033”, and
by striking “2025” in the heading and inserting “2032”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2022.