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.

President Trump is expected to sign the so-called "big, beautiful bill" in a ceremony on Friday at the White House to coincide with the July 4 holiday.It comes after the House approved the measure on Thursday.