In a procedural vote, the House failed to advance H.R. 7160, which would increase the cap on the federal deduction for state and local taxes (SALT) from $10,000 to $20,000 for married couples filing jointly. We reported that this legislation passed the House Rules Committee earlier this month.
This SALT deduction cap provision in the Tax Cuts and Jobs Act is set to expire at the end of 2025 if Congress does not extend it.
Full deductibility is vital to the long-term economic health of many states, including New Jersey. In 2017, the League passed Conference Resolution 2017-02, Urging Congress to Protect the Deductibility of State and Local Taxes, and it has remained among the League’s Federal priorities since.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110