S. 85Senate117th Congress (2021-2023)In Committee

SALT Deductibility Act

Introduced January 28, 2021

AI-Generated Summary

Updated February 7, 2026 at 9:42 PM UTC

The SALT Deductibility Act repeals the cap on the deduction for state and local taxes, letting taxpayers fully deduct their state and local property and income taxes when they itemize. It changes the Internal Revenue Code by removing the specific limitation paragraph. The change takes effect for tax years starting after December 31, 2020 and mainly affects individual income‑tax filers.

Key Provisions

  • Repeals the $10,000 limitation on state and local tax (SALT) deductions by striking paragraph (6) of IRC Section 164(b).
  • The amendment applies to taxable years beginning after December 31, 2020.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text: CR S200)

January 28, 2021

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SenateIntro Referral

Introduced in Senate

January 28, 2021

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text: CR S200)

January 28, 2021

Floor Debate

3 members

What members said about S. 85 on the floor

3 Democrats
Jack Reed
Sen. Jack ReedD-RI · Jan 28, 2021

Mr. President, among the many barriers to safely bringing students, teachers, and staff back to school for in-person instruction is the condition of school facilities. A recent Government…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jan 28, 2021

Mr. President, I rise to speak in support of the ``West Los Angeles VA Campus Improvement Act,'' which I introduced today. Representative Ted Lieu (D-CA) is introducing companion legislation in the…

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Jan 28, 2021

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Jan 28, 2021

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

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Introduced in SenateIssued January 28, 2021

II

117th CONGRESS

1st Session

S. 85

IN THE SENATE OF THE UNITED STATES

January 28, 2021

Mr. Schumer (for himself, Mr. Wyden, Mr. Menendez, Mrs. Gillibrand, Mr. Booker, Mr. Durbin, and Ms. Duckworth) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to repeal the limitation on the deduction for certain taxes, including State and local property and income taxes.

1.

Short title

This Act may be cited as the Securing Access to Lower Taxes by ensuring Deductibility Act or the SALT Deductibility Act.

2.

Repeal of limitation on deduction for State and local, etc. taxes

(a)

In general

Section 164(b) of the Internal Revenue Code of 1986 is amended by striking paragraph (6).

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2020.