If the House provision is enacted, the SALT cap would rise to $40,000, up from $30,000 in the previous plan, and phases out over $500,000.

The budget reconciliation bill passed by House Republicans early Thursday would gut clean energy tax credits that Democrats approved three years ago.

Overall, the Republican tax bill, known as the One Big Beautiful Bill Act, would add $2.3 trillion to the deficit over 10 years, according to the CBO.