United States 116th Congress Status: Passed House Bipartisan · 52 D · 1 R cosponsors

HR 5377 — Restoring Tax Fairness for States and Localities Act

Last action — Received in the Senate and Read twice and referred to the Committee on Finance.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 116th Congress. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Summary

Restoring Tax Fairness for States and Localities Act This bill increases the tax deduction for state and local taxes in 2019 to $20,000 for persons filing a joint tax return if the adjusted gross income of the taxpayer does not exceed $100 million. It eliminates the current $10,000 cap on the deduction in 2020 and 2021 except for taxpayers whose adjusted gross income exceeds $100 million. The bill increases the deduction for the expenses of elementary and secondary school teachers from $250 to $1.000. It also allows a deduction from gross income (above-the-line deduction) for expenses of first responders, up to $1,000, for tuition or fees for professional development courses related to service as a first responder or for uniforms used by first responders. The bill defines "first responder" as any individual employed as a law enforcement officer, firefighter, paramedic, or emergency medical technician for at least 1,000 hours during the taxable year. The bill increases the top marginal income tax rate to 39.6% beginning in 2020, and reduces the dollar amount at which the increased tax rate begins.

Bill Text

What changed in the latest version

6 added · 3 removed

Plain-language change summary

The text indicates that the title and session details of the bill have been updated to reflect its referral to the Senate and the Committee on Finance. The previous session designation has been removed, and these changes clarify the current legislative status of the bill. This matters because it provides a clear view of the bill's progression and where it is being considered in the legislative process.

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5377 Engrossed in House (EH)] <DOC> 116th CONGRESS 1st Session H.
5377 Referred in Senate (RFS)] <DOC> 116th CONGRESS 2d Session H.
5377 _______________________________________________________________________ AN ACT To amend the Internal Revenue Code of 1986 to modify the limitation on deduction of State and local taxes, and for other purposes.
5377 _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES January 3, 2020 Received;
read twice and referred to the Committee on Finance _______________________________________________________________________ AN ACT To amend the Internal Revenue Code of 1986 to modify the limitation on deduction of State and local taxes, and for other purposes.
Clerk.
CHERYL L.
116th CONGRESS 1st Session H.
JOHNSON, Clerk.
R.
5377 _______________________________________________________________________ AN ACT To amend the Internal Revenue Code of 1986 to modify the limitation on deduction of State and local taxes, and for other purposes.
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How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill modifies the limitation on the deduction of state and local taxes and increases certain deductions for expenses related to elementary and secondary school teachers and first responders, while changing the income tax brackets.

  • Section 164(b)

    (7) Special rule for limitation on individual deductions for 2019.--In the case of a taxable year beginning after December 31, 2018, and before January 1, 2020, if the adjusted gross income of the taxpayer for such taxable year does not exceed $100,000,000, paragraph (6) shall be applied by substituting `($20,000 in the case of a joint return)' for `($5,000 in the case of a married individual filing a separate return)'.

    Adds a special rule for the limitation on individual deductions for the year 2019.

  • Section 164(b)

    (8) Suspension of dollar limitation on state and local taxes for 2020 and 2021.--(A) In general.--In the case of any taxable year beginning in 2020 or 2021, subparagraph (B) of paragraph (6) shall not apply.

    Suspends the dollar limitation on state and local tax deductions for the years 2020 and 2021.

  • Section 62(a)(2)(D)

    $250 → $1,000

    Increases the deduction for certain expenses of elementary and secondary school teachers from $250 to $1,000.

  • Section 62(a)(2)

    (F) Certain expenses of first responders.--The deductions allowed by section 162 which consist of expenses, not in excess of $1,000, paid or incurred by a first responder--(i) as tuition or fees for the participation of the first responder in professional development courses related to service as a first responder; or (ii) for uniforms used by the first responder in service as a first responder.

    Allows first responders to deduct certain expenses related to their profession.

  • Section 62(d)(3)

    the $1,000 amount in subsection (a)(2)(D) → the $1,000 amount in each of subparagraphs (D) and (F) of subsection (a)(2)

    Updates the inflation adjustment to include the new deduction for first responders.

  • Section 1(j)(2)

    37% → 39.6%

    Increases the top marginal income tax rate from 37% to 39.6%.

  • Section 1(j)(2)(A)

    $600,000 → $479,000

    Reduces the income threshold for the top marginal tax rate from $600,000 to $479,000.

  • Section 1(j)(2)(B)

    $500,000 → $452,400

    Reduces the income threshold for the second-highest marginal tax rate from $500,000 to $452,400.

  • Section 1(j)(2)(C)

    $500,000 → $425,800

    Reduces the income threshold for the third-highest marginal tax rate from $500,000 to $425,800.

  • Section 1(j)(2)(D)

    $300,000 → $239,500

    Reduces the income threshold for the fourth-highest marginal tax rate from $300,000 to $239,500.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the House Committee on Ways and Means.

  4. Committee Consideration and Mark-up Session Held.

  5. Ordered to be Reported (Amended) by the Yeas and Nays: 24 - 17.

  6. Reported (Amended) by the Committee on Ways and Means. H. Rept. 116-345.

  7. Reported (Amended) by the Committee on Ways and Means. H. Rept. 116-345.

  8. Placed on the Union Calendar, Calendar No. 275.

  9. Considered under the provisions of rule H. Res. 772. (consideration: CR H12270-12284; text: CR H12270-12271)

  10. DEBATE - The House proceeded with one hour of debate on H.R. 5377.

  11. DEBATE - The House proceeded with further debate on H.R. 5377.

  12. The previous question was ordered pursuant to the rule.

  13. Mr. Rice (SC) moved to recommit with instructions to the Committee on Ways and Means. (text: CR H12281)

  14. DEBATE - The House proceeded with 10 minutes of debate on the Rice (SC) motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to strike and amend language in sections 2(a), 3(a), 4(a), 4(b)(2), 5(a), and 5(c) of the bill.

  15. The previous question on the motion to recommit with instructions was ordered without objection.

  16. On motion to recommit with instructions Agreed to by the Yeas and Nays: 388 - 36 (Roll no. 699).

  17. Passed/agreed to in House: On passage Passed by recorded vote: 218 - 206 (Roll no. 700).

  18. On passage Passed by recorded vote: 218 - 206 (Roll no. 700).

  19. Motion to reconsider laid on the table Agreed to without objection.

  20. Received in the Senate and Read twice and referred to the Committee on Finance.

Sponsors

Sponsorship breakdown

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1 sponsors · 52 co-sponsors · 494 not signed on

Sponsors (1)

Co-sponsors (52)

Not signed on (494)

494 members have not signed on to this bill.

Show all 494 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation
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Frequently asked questions

What does HR 5377 do?
Restoring Tax Fairness for States and Localities Act This bill increases the tax deduction for state and local taxes in 2019 to $20,000 for persons filing a joint tax return if the adjusted gross income of the taxpayer does not exceed $100 million. It eliminates the current $10,000 cap on the deduction in 2020 and 2021 except for taxpayers whose adjusted gross income exceeds $100 million. The bill increases the deduction for the expenses of elementary and secondary school teachers from $250 to $1.000. It also allows a deduction from gross income (above-the-line deduction) for expenses of first responders, up to $1,000, for tuition or fees for professional development courses related to service as a first responder or for uniforms used by first responders. The bill defines "first responder" as any individual employed as a law enforcement officer, firefighter, paramedic, or emergency medical technician for at least 1,000 hours during the taxable year. The bill increases the top marginal income tax rate to 39.6% beginning in 2020, and reduces the dollar amount at which the increased tax rate begins.
Who sponsors HR 5377?
HR 5377 is sponsored by DeLauro, Rosa L. (Democratic), Lieu, Ted (Democratic), Brown, Anthony G. (Democratic), Pallone, Frank (Democratic), Davis, Susan A. (Democratic), Speier, Jackie (Democratic), Thompson, Mike (Democratic), Pascrell, Bill (Democratic), King, Peter T. (Republican), Beyer, Donald S. (Democratic), Boyle, Brendan F. (Democratic), Chu, Judy (Democratic), Davis, Danny K. (Democratic), Higgins, Brian (Democratic), Larson, John B. (Democratic), Panetta, Jimmy (Democratic), Sánchez, Linda T. (Democratic), Schneider, Bradley Scott (Democratic), Casten, Sean (Democratic), Cisneros, Gilbert Ray (Democratic), Correa, J. Luis (Democratic), Craig, Angie (Democratic), Engel, Eliot L. (Democratic), Eshoo, Anna G. (Democratic), Kim, Andy (Democratic), Levin, Mike (Democratic), Lowey, Nita M. (Democratic), Malinowski, Tom (Democratic), Meeks, Gregory W. (Democratic), Meng, Grace (Democratic), Morelle, Joseph D. (Democratic), Nadler, Jerrold (Democratic), Phillips, Dean (Democratic), Porter, Katie (Democratic), Raskin, Jamie (Democratic), Rice, Kathleen M. (Democratic), Rose, Max (Democratic), Sherrill, Mikie (Democratic), Sires, Albio (Democratic), Trone, David J. (Democratic), Underwood, Lauren (Democratic), Watson Coleman, Bonnie (Democratic), Courtney, Joe (Democratic), Espaillat, Adriano (Democratic), Harder, Josh (Democratic), Maloney, Sean Patrick (Democratic), Krishnamoorthi, Raja (Democratic), Huffman, Jared (Democratic), Gonzalez, Vicente (Democratic), Gomez, Jimmy (Democratic), Wexton, Jennifer (Democratic), Norton, Eleanor Holmes (Democratic), and Suozzi, Thomas R. (Democratic).
What is the current status of HR 5377?
This bill died with 116th Congress. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HR 5377?
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