The impact of the SALT cap on state income taxation: What’s next after the One Big Beautiful Bill Act
ThomsonReuters
JULY 18, 2025
The permanent nature of the new cap provides a stable planning horizon, a welcome change from the sunset provisions and yearly uncertainty that characterized SALT policy since 2018. State-level tax policy could begin to shift again as local governments regain some fiscal flexibility due to restored federal deductibility.
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