House Ways and Means Committee Advances Pandemic
Aid Package without Repealing SALT $10,000 Deduction Cap

Hold the SALT!

It would appear that a repeal of the $10,000 limit on previously unlimited deductions on state and local tax (SALT) will not be in the coming pandemic aid package, as the House Ways and Means Committee approved its portion of the bill without it. At the same time, according to informed sources, it appears unlikely that Senate Majority Leader Chuck Schumer (D-N.Y.) will have the measure included in his version of the bill either.

This latest development is in stark contrast with previous rhetoric lead by Schumer that called for a repeal of the 2017 measure (see “Democrats Considering Repealing SALT Deduction Cap Via Pandemic Relief Bill”).

One of Schumer’s bills removes the cap, but if reports of him not putting it in the pandemic package are true, it will need to be considered as its own separate measure. It is currently with the Senate Finance Committee.

Galleros Robinson anticipates a lot of back and forth on this matter in what originally appeared to be a done deal. We will keep you up to date as the debate on the repeal of the SALT $10,000 limitation continues.

The information presented here should not be construed as legal, tax, accounting, or valuation advice. No one should act on such information without appropriate professional advice and after a thorough examination of the particular situation.