The bill proposes raising the state-and-local-tax deduction cap to $40,000 with a 1% increase every year through 2029, then reverting to $10,000 in 2030. It sets the income threshold at $500,000 and increases it by 1% annually through 2029.

The Senate passed President Trump’s “Big Beautiful Bill” July 1, giving the president his most significant legislative victory in his second term.