The proposal calls for "permanently" extending the $10,000 cap on so-called SALT deductions, first passed by Congress in 2017 and signed into law by President Donald Trump during his first term. Before 2017, there was no limit on the amount of state and local tax deductions a homeowner could write off when filing their federal income taxes.

US businesses and wealthy universities scored major wins in the Senate Republicans’ version of President Donald Trump’s tax bill, while low-income Americans and clean energy providers are poised to be hit the hardest.

A deal reached in the House to raise the SALT deduction could be in danger in the Senate. The U.S. Capitol is seen as lawmakers prepare to depart for the holiday recess, at the Capitol in Washington, Thursday, Dec. 14, 2023. (J. Scott Applewhite | AP Photo) J. Scott Applewhite | AP Photo

The Senate needs 51 votes to pass the bill, which has already sparked opposition from moderate and conservative Republicans.

Throughout the process of negotiating the GOP’s “One Big, Beautiful Bill” in the U.S. House, Reps. Jeff Van Drew (R-Dennis) and Tom Kean Jr. (R-Westfield)