Limit Corporate Deductions for State and Local Taxes to $10,000

Summary: Under current law, C corporations subject to the federal corporate income tax may deduct all state and local income, property, and/or sales taxes from their federal taxable income. By contrast, individual taxpayers are limited to a state and local tax (SALT) deduction of $10,000.

This proposal would extend the $10,000 limitation to corporations’ state and local tax (C-SALT) deductions.1

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Table 1. Estimated Revenue Effects, Fiscal Years 2026-2035

Change in revenues from TCJA extension baseline, billions of dollars

2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Total, 2026 - 2035
63.8	69.2	73.4	76.4	79.9	85.5	87.9	92.4	95	99.5	823

Note: Estimate is relative to a Tax Cuts and Jobs Act (TCJA) extension baseline in which all expiring provisions of the TCJA are made permanent after 2025.

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1. Specifically, this proposal would apply IRC section 164(b)(6) to corporations as well as individuals.  ↩