Ways and Means Committee Approves SALT Cap Relief

ACEC News / Advocacy

December 12, 2019

Ways and Means Committee Approves SALT Cap Relief

The House Ways and Means Committee passed legislation to provide relief from the $10,000 cap on the deductibility of state and local taxes (SALT) that was established in the 2017 Tax Cuts and Jobs Act.

Under the legislation, married couples filing jointly would receive relief from the SALT cap in 2019, and the cap would be eliminated for 2020 and 2021 before returning in 2022. The tax relief would be offset by raising the top individual tax rate from 37 percent to 39.6 percent and applying that top rate to more taxpayers.

ACEC joined with business allies in sending a letter to Ways and Means Committee Chairman Richard Neal (D-MA) highlighting the impact of the individual tax rate increase on business income. Owners of passthrough firms—including S corporations, partnerships, and sole proprietorships—pay their business taxes on their individual tax returns.

Although the legislation is expected to move to the House floor, it is not expected to be considered by the Senate. 

For more information, contact ACEC Senior Director for Tax and Regulatory Affairs Katharine Mottley.

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