SALT Deductibility Act aims to bring relief to high-tax NYC homeowners
Legislation to lift SALT deduction cap could bring relief to NY homeowners
Homeowners in high tax states like New York may soon be able to breathe a sigh of relief as legislation has been filed in Congress to lift the cap placed on the State and Local Tax deductions known as SALT. The Salt Deductibility Act would repeal the $10,000 limit, potentially reducing the enormous amount in extra taxes that homeowners and state taxpayers have had to pay since the cap was first implemented in 2017.
NEW YORK - A new push is aiming to bring some tax relief to stressed New York homeowners by lifting the cap on SALT deductions.
The State and Local Tax deductions known as SALT was first implemented under the Trump Administration in 2017. Now, new legislation filed in Congress would repeal the $10,000 limit that has cost homeowners and state taxpayers an enormous amount in extra taxes.
"It allows homeowners here on Long Island to fully deduct not only deduct their property taxes but also New York State income tax," said Rep. Andrew Garbarino.
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Prior attempts to lift the cap have been unsuccessful but now with more Republicans in Congress from high-tax states, local leaders believe it’s more realistic.
"I think this legislation is common sense for individuals," said Rep. Anthony D’Esposito.
However, some experts are skeptical.
"I think it’s about 50 percent that we see some change between 2025," said Garrett Watson with Tax Foundation.
Others say it comes down to whether House Speaker Kevin McCarthy can be persuaded.
"Republicans created this problem for taxpayers during the Trump administration," said political analyst Lawrence Levy. "It’s ironic Republicans are trying to fix it."
The act still has to be brought to committee, and then the floor. While it clearly won’t be passed for this year’s tax deadline, the goal is for next.