Among the items passed by the House of Representatives Friday morning in the Build Back Better Act was an increase in the state and local tax (SALT) cap.
The $2 trillion bill, which passed 220-213, increased the cap from $10,000 to $80,000. That would increase the amount that taxpayers can deduct from their tax returns.
The legislation now has to go to the Senate for approval.
The cap was set at $10,000 in 2017 federal Tax Cuts and Jobs Act passed during the Trump administration. Previously, taxpayers could fully deduct state and local taxes.
It was estimated that the reduced cap cost New York homeowners $30 billion, or $2,600 per home.