State, local relief not in cards for residents of high-tax states as House assesses Inflation Reduction Act

After fighting to repeal the $10,000 limit on the federal deduction for state and local taxes, known as SALT, a group of House Democrats say they will still vote for the party’s spending package without SALT reform.

Reps. Josh Gottheimer, D-N.J.; Mikie Sherrill, D-N.J.; and Tom Suozzi, D-N.Y., members of the SALT Caucus who have vowed to oppose a bill without SALT relief, expressed support for the Inflation Reduction Act after it passed in the Senate.

Enacted through the Republicans’ 2017 tax overhaul, the SALT cap has been a pain point for costly states like New York and New Jersey because residents can’t deduct more than $10,000 in state and local taxes on their federal returns.