SALT & Tax Exempt Municipal Bonds
SALT Cap Expansion
Effective Date: Applies to taxable years beginning after Dec. 31, 2024.
- Increases limitation on SALT deduction to $40,000 for 2025 and $40,400 for 2026, increasing to 101% of previous year's cap for 2027, 2028, and 2029, and reverting to $10,000 for 2030 and beyond.
- MAGI phaseout begins at $500,000 for 2025 and $505,000 for 2026, increasing to 101% of the previous year's threshold for 2027, 2028, and 2029 (half of those amounts for married filing separately).
- Phaseout cannot reduce deduction below $10,000.
Tax Exempt Municipal Bonds
Effective Date: Jul. 4, 2025
- Preserves federal tax exemption for all municipal bonds, including qualified private activity bonds
- Expands tax code to include additional provisions authorizing tax-exempt municipal bonds for spaceports. Spaceports and space cargo manufacturing can be financed with bon proceeds, along with other facilities for repairs, flight control operations, and other activities the same way airports are financed