HR3098-118

2. Modification of limitation on deduction for State and local taxes Section 164(b)(6)(B) of the Internal Revenue Code of 1986 is amended by striking $10,000 ($5,000 in the case of a married individual filing a separate return) and inserting $60,000 (twice such amount in the case of a joint return). Section 164 of such Code is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: In the case of any taxable year beginning after 2023, the $60,000 amount in subsection (b)(6)(B) shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section (1)(f)(3) of the Internal Revenue Code of 1986 for the calendar year in which the taxable year begins by substituting 2022 for 2016 in subparagraph (A)(ii) thereof. If any amount as adjusted under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50. Section 164(b)(6) of such Code is amended— by striking January 1, 2026 and inserting January 1, 2033, and by striking 2025 in the heading and inserting 2032. The amendments made by this section shall apply to taxable years beginning after December 31, 2022. (g)Inflation adjustment(1)In generalIn the case of any taxable year beginning after 2023, the $60,000 amount in subsection (b)(6)(B) shall be increased by an amount equal to—(A)such dollar amount, multiplied by(B)the cost-of-living adjustment determined under section (1)(f)(3) of the Internal Revenue Code of 1986 for the calendar year in which the taxable year begins by substituting 2022 for 2016 in subparagraph (A)(ii) thereof.(2)RoundingIf any amount as adjusted under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50..