SALT Restoration Legislation in the 218th Congress
In 2017, Congress passed the Tax Cuts and Jobs Act (TCJA), a major overhaul of the U.S. tax code. The legislation capped the State and Local Tax (SALT) deduction at $10,000 per year, consisting of property taxes plus state income or sales taxes, but not both through tax year 2025. Prior to the establishment of the cap, SALT was one of the highest claims made by individuals on their annual tax filings and capping the deduction at $10,000 has limited state and local control of tax systems shifting the intergovernmental balance of taxation.
Both NYSAC and the National Association of Counties (NACo) opposed this portion of the tax reform law and have been advocating to fully restore the SALT deduction ever since.
In February of 2023, a bipartisan group of House members relaunched a "SALT" caucus and introduced legislation to repeal the $10,000 limit on deducting state and local taxes.