For Rep. Nick LaLota, the next tax fight in Washington is all about keeping a key write-off alive for his constituents. The Long Island Republican said Wednesday he will push to extend the $40,000 cap on state and local tax, or SALT, deductions beyond its five-year sunset if House Republicans move ahead with another tax bill, a move that could hit home for a lot of Long Island homeowners. LaLota has framed the push as a way to protect middle-class homeowners who could see their deductions shrink if the cap snaps back. His comments land as Congress floats another round of tax-code changes and Long Island families juggle rising property tax bills and the fallout from recent federal tax tweaks.
As reported by Bloomberg, LaLota told reporters he would seek to "secure more benefits related to the SALT deduction" and said he plans to pursue legislation that would extend the $40,000 threshold past its five-year window if Congress takes up a second tax bill. According to Bloomberg, the remarks came as Republicans quietly debate whether to advance a follow-up tax measure in the coming months.
How the SALT change works and when it expires
The $40,000 cap was written into last year’s One Big Beautiful Bill, which temporarily boosted the state and local tax deduction from the post-2017 $10,000 limit and set an automatic reversion in 2030. As reported by CNBC, the provision is indexed at roughly 1% a year and includes income phaseouts that scale back the benefits for higher earners.
Long Island stakes
LaLota was one of a small group of New York Republicans who pressed hard for the higher cap, arguing the change would make a real difference in his district. A May 2025 press release from his office touted the $40,000 figure as a win that would "deliver full relief to 92% of constituents" and said many Suffolk County homeowners could save thousands when they file. According to LaLota's office, the $40,000 number landed in the bill after months of negotiations.
Politics and the price tag
Keeping the higher SALT cap in place is likely to run into resistance from fiscal conservatives who worry about the hit to the federal budget and the fact that much of the benefit flows to residents of high-tax states. The Committee for a Responsible Federal Budget has flagged SALT changes as one of the more expensive pieces of the broader tax package and has warned that any effort to make the higher cap permanent would require corresponding offsets. CRFB notes that the trade-offs involved would be substantial and politically tricky.
What’s next
If House leaders push ahead with a new tax bill, LaLota told Bloomberg he will press colleagues to lock in an extension or craft other changes that preserve the $40,000 threshold. His campaign site underscores that message, saying he is "committed to exploring every path to extend the $40,000 cap beyond 2029." According to LaLota's campaign, the coming debate over an extension could determine whether the recent SALT gains survive past the current sunset.
