The original Senate version of the tax reform bill proposed eliminating all SALT deductions. The House of Representatives’ version of the bill proposed repealing the SALT deduction except for real estate taxes of up to $10,000.
An amendment to allow the deduction of up to $10,000 in state and local property taxes will now be included in the Senate tax bill, Senator Susan Collins, R-Maine, tweeted on Friday.
The tax reform legislation also proposes changes to the mortgage interest deduction. Currently, individuals can deduct up to $1 million in mortgage debt.
The House tax reform plan proposes capping the deduction at $500,000 in mortgage debt for newly purchased homes. But a deduction of up to $1 million in mortgage debt would be maintained for current homeowners.
The Senate plan does not include changes to the mortgage interest deduction.
Lawmakers are working to come up with one tax reform bill.
“The operating assumption would be that the Senate’s provisions will be controlling,” said Jared Walczak, senior policy analyst at the Tax Foundation.
