CCAGW Annual Ratings

State and Local Tax Deductions – Passage


Passage of the bill, as amended, that would reduce or eliminate the existing $10,000 cap on federal tax deductions for state and local taxes, which was established under the 2017 tax law, for tax years 2019 through 2021. Specifically, it would double the cap to $20,000 for married couples filing a joint tax return for tax year 2019, and it would eliminate the cap for tax years 2020 and 2021. As amended, the bill would retain the cap for taxpayers whose adjusted gross incomes exceed $100 million in a taxable year. As an offset, the bill would increase the top individual income tax rate from 37% to 39.6% and it would reduce the corresponding income thresholds at which the top tax bracket applies. The bill would also permanently increase from $250 to $1,000 a tax deduction for professional development costs for elementary and secondary school teachers, and it would establish a new tax deduction of up to $1,000 for first responders, including for costs associated with related professional development courses.

Vote Number: 
House Vote 700
Bill Number: 
HR 5377
CCAGW Position: 
Vote Results: 
Passed 218-206 : D 213-16; R 5-189; I 0-1