On Wednesday, the House of Representatives passed H.R. 7024 by a vote of 357-70. The Tax Relief for American Families and Workers Act of 2024 does not include any changes to the $10,000 State and Local Tax (SALT) cap deduction. The legislation, which includes tax incentives for research and development, interest deductibility, and an expansion of the child tax credit, awaits consideration in the Senate.
After the vote on H.R. 7024 the House Rules Committee passed H.R. 7160, SALT Marriage Penalty Elimination Act, by a vote of 8-5 on Thursday. H.R. 7160. This would increase the SALT cap deduction to $20,000 for taxpayers with an adjusted gross income of less than $500,000. H.R. 7160 awaits further consideration in the House.
As we shared last week, the tax relief bill passed the Ways and Means Committee last week where New Jersey Congressman Pascrell offered an amendment to increase the deduction to $60,000 for single filers and $120,000 for a married couple filing jointly. That amendment was not agreed to.
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.