Bill to restore the state and local tax (SALT) deduction introduced in 116th Congress

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Brett Mattson

Legislative Director, Justice & Public Safety

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County Countdown – June 17, 2025

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Key Takeaways

On January 3, the bipartisan duo of Representative Nita Lowey (D-N.Y.) and Representative Peter King (R-N.Y.) introduced the Securing Access to Lower Taxes by Ensuring Deductibility Act of 2019 (SALT Deductibility Act). The legislation would repeal the $10,000 cap on the SALT deduction established by the Tax Cuts and Jobs Act of 2017 (P.L. 115-97).

The SALT deduction allows taxpayers to deduct state and local taxes paid from their federally taxable income, protecting individuals and families from double taxation and preserving states and local governments’ decision-making authority. By capping SALT deductibility, Congress shifted the intergovernmental balance of taxation and limited state and local control of tax systems. Eliminating the $10,000 cap on SALT deductions would improve counties’ ability to deliver essential public services, such as emergency response, public health services and infrastructure development.

The legislation introduced by Reps. Lowey and King does not include an offset for the cost of repealing the SALT deduction cap. Counties support eliminating the cap on SALT deductions, and NACo will continue to work with Congress to restore the full deductibility of SALT.

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