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Jun 2, 2025  |  
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Zach Halaschak


NextImg:SALT changes in House tax bill increase deficit by $130 billion

The changes to the SALT cap agreed to in negotiations after the House Ways and Means Committee passed its tax bill would add nearly $130 billion more to the deficit, according to the Joint Committee on Taxation.

The JCT, Congress’s in-house tax scorekeeper, released the much-anticipated score for the tax portion of the reconciliation legislation Wednesday. The changes to the cap on state and local tax deductions were perhaps the most notable revision since the bill passed the Ways and Means Committee.

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The tax portion of the massive fiscal bill passed in the House last week would permanently lower individual income tax rates while increasing spending for the border and cutting spending to some entitlement programs.

While the legislation passed the House in a narrow vote, negotiations to further increase the SALT cap occurred between the tax bill’s passage in the Ways and Means Committee and when the full Congress voted on it.

The $10,000 cap was lifted to $40,000, with a $500,000 income limitation. Lawmakers from high-tax states, such as Reps. Mike Lawler (R-NY) and Nick LaLota (R-NY), rebuffed the Ways and Means Committee’s initial offer of $30,000, which passed out of the committee.

In total, the latest JCT numbers show that the tax portion of the reconciliation bill that House Republicans passed would cost some $3.9 trillion over the next decade.

There were also negotiations over the level of cuts to clean energy tax credits, with some fiscal hawks pushing House Speaker Mike Johnson (R-LA) to cut spending more in exchange for their votes.

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The version of the bill passed by the full House contains about $11.5 billion more in cuts to clean energy tax credits than the version that initially passed the Ways and Means Committee. That was from deeper cuts to “tech-neutral” clean energy investment and production credits, but fewer cuts to nuclear credits.

The JCT has yet to score the entirety of the combined reconciliation legislation, which contains cuts to things such as Medicaid spending over time and billions of dollars directed to immigration authorities and border security.