H.R. 7160, which was introduced on January 31, 2024, would raise the cap on the state and local tax deduction (SALT) from $10,000 to $20,000 for joint returns with AGI below $500,000 in 2023. After tax year 2023, the legislation would allow the SALT cap to revert to its current law value of $10,000 for joint filers until 2026. At that point, the cap will expire along with several other individual tax provisions from the 2017 Tax Cuts and Jobs Act.

As shown in Table 1, PWBM estimates that H.R. 7160 would reduce revenue by $12 billion over the 10-year budget window, with all of the revenue lost falling in fiscal year 2024.