SALT Cap Fix in Pennsylvania Stalled by Tax Complexity, Budget

Pennsylvania is unlikely to pass a workaround to the federal cap on state-and-local tax deductions this year, since creating such a mechanism would involve grappling with significant tax-code issues and state lawmakers are already occupied by an overdue budget.

The stalled work on a SALT cap workaround means Pennsylvania taxpayers will keep waiting for tax relief that is already available in the majority of other states, including all the commonwealth’s neighbors. The new federal tax law President Donald Trump signed in July increased the cap, but didn’t fully negate taxpayers’ interest in a way to bypass it.

The state’s complex ...