The bill proposes raising the state-and-local-tax deduction cap to $40,000 with a 1% increase every year through 2029, then reverting to $10,000 in 2030. It sets the income threshold at $500,000 and increases it by 1% annually through 2029.

The Senate passed the "Big, Beautiful Bill" by a single vote. However, before it can make its way to Trump's desk and officially into law, the bill will go back to the U.S. House of Representatives, which will look through and attempt to approve the Senate's changes.