Today, Congressman Mike Lawler confirmed that the House-negotiated $40,000 cap on State and Local Tax (SALT) deductions will remain in the final text of H.R. 1, known as the One Big Beautiful Bill Act. The House had passed this bill on May 22.
Lawler stated: “After months of working closely with my SALT Caucus colleagues, we’ve secured an agreement to raise the SALT cap to $40,000 for five years with a $500,000 income cap and 1% growth, maintaining the House-passed language. This is meaningful relief for middle-class families in the Hudson Valley who have been hit hard by the current $10,000 cap.”
The bill also ensures that pass-through entities can deduct their state and local taxes. Lawler emphasized this as a significant benefit for small businesses nationwide.
“I want to thank President Trump, Speaker Johnson, and Treasury Secretary Bessent for working with us to make SALT relief a priority. As I have been from the moment I entered Congress, I’m committed to fighting to ensure we deliver real tax relief to the hardworking families of New York,” Lawler added.
Congressman Lawler represents New York’s 17th Congressional District and is recognized as one of the most bipartisan members of Congress. His district includes parts of Rockland, Putnam, Dutchess, and Westchester Counties.
