As many of you are aware, changes to the federal tax code in 2017 as part of the Tax Cut and Jobs Act (TCJA) created a new cap on the itemized deduction of State and Local Taxes (SALT) for certain taxpayers. This has led to an unfair treatment of certain taxpayers in Pennsylvania when filing their federal tax returns compared to their peers in surrounding states and has hurt the Commonwealth’s competitiveness in our region.

To rectify this issue, I  am proposing that we join nearly every other state in creating a state-level solution that allows Pennsylvanian’s the ability to reduce their federal tax liability related to the taxes they pay to local and state jurisdictions. Red and blue states across the nation have created this type of program in response to the changes instituted in the TCJA including: Massachusetts, Alabama, California, Ohio, New Jersey, West Virginia, Maryland, New York, Nebraska, and more.  

To be clear, this proposal would not have any impact on the Commonwealth’s tax revenues, nor would it raise taxes on any Pennsylvanian taxpayer.
 
It is my belief that this legislation is common sense and would help put dollars back into the pockets of Pennsylvanians.

Please join me in ensuring the Pennsylvania taxpayers are treated fairly and equally to their peers in other states. 

Statutes/Laws affected:
Printer's No. 2092 (Jul 08, 2025): P.L.6, No.2