Lawmakers are close to a deal that would raise the SALT cap to $40,000—offering potential tax relief for homeowners in high-cost states.

Rep. Mike Lawler backed legislation that would quadruple the SALT deduction on federal taxes from $10,000 to $40,000.

House Republican leaders released a new version of President Donald Trump’s massive tax and spending bill with a higher limit on the deduction for state and local taxes and other changes in a bid to win over warring GOP factions to support the legislation.

The new version of the Trump tax bill would raise the state and local tax deduction cap to $40,000, in an effort win over a group of holdouts from New York, New Jersey and California. The higher limit would begin this year. The amount allowed would gradually phase down for taxpayers with annual incomes greater than $500,000.

The bill is expected to undergo more changes when it goes to the Senate for final passage. FOX 5 NY's Morgan McKay has more.

SALT refers to the ability to deduct taxes paid to state and local governments from an individual’s federal tax bill. The 2017 legislation capped that amount at $10,000, an amount that many ...

U.S. Rep. Elise Stefanik said she was the “deciding vote” on a megabill that quadrupled the maximum state and local tax deduction.

The House is trying to pass its budget bill, and state and local tax deductions are an issue on which New York House Republicans have been unable to budge.