General information only. Not tax, legal or investment advice. A planning idea named here is not a recommendation for any person. Prem Tax and Accounting Corp is a CPA firm, not a law firm. Tax rules change often and figures are for the tax year shown: confirm with the official source or a qualified adviser before you act. Read the full notice. Book a 10-minute call.

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The sunset countdown: what ends after 2028 and 2029

Some breaks in Public Law 119-21 have end dates. We list the last year of each as the law stands on November 6, 2026, and we do not predict what Congress will do.

Prepared by Prem Tax and Accounting Corp. Last reviewed November 6, 2026. Figures as of November 6, 2026.

Some tax breaks in Public Law 119-21 have end dates, and the first arrive after tax year 2028. This sunset countdown shows the last year of each temporary provision as the law stands on November 6, 2026, using the Dimmer-Switch Calendar to keep track. Our permanent versus temporary guide explains why the difference matters.

The short version

The senior, tips, overtime and car-loan deductions have tax year 2028 as their last year.
The higher state and local tax (SALT) cap ends after 2029. From 2030 the cap is $10,000, with no end date.
The rates, larger standard deduction, 199A deduction and 100 percent bonus depreciation have no end date.
As of November 6, 2026 we found no later law that changes these dates.

Last year by provision

Provision	Last year	What the law fixes: amount; phase-out start
Senior deduction	Tax year 2028	$6,000 per person; $75,000 ($150,000 joint)
Tips deduction	Tax year 2028	Up to $25,000; $150,000 ($300,000 joint)
Overtime deduction	Tax year 2028	Up to $12,500 ($25,000 joint); same starts
Car loan interest	Tax year 2028	Up to $10,000; $100,000 ($200,000 joint)
Higher SALT cap	Tax year 2029	$40,400 in 2026, then 101% of the year before
Qualified production property	Construction begins before 2029	Optional 100% first-year deduction for some factory buildings
Business wind and solar credits	In service by December 31, 2027	For projects that begin construction after July 4, 2026

None of the four amounts is indexed. Payroll taxes still apply to tips and overtime.

State and local tax deduction cap by tax year Dollars a year; 2027 to 2029 are computed and the IRS has printed none

2025$40,000

2026$40,400

2027$40,804

2028$41,212.04

2029$41,624.16

2030$10,000

Source: 26 U.S.C. 164(b)(7) and our arithmetic

An invented example

Ruth and Sam, both 67, have $120,000 of income in 2028, below the $150,000 joint start. Each takes the $6,000 senior deduction, $12,000 together. At a 12 percent top rate, that lowers federal tax by $1,440. For tax year 2029 the law has no senior deduction.

What people often consider

Keeping records now for the four deductions, such as pay statements, loan papers and the vehicle identification number, because 2028 is the last year.
Checking whether itemizing still beats the standard deduction once the SALT cap falls to $10,000 in 2030. The trap: IRS forms may round the computed 2028 and 2029 caps.
For owners, asking how the Illinois entity tax fits: Illinois ties its election to years the federal SALT limit applies, and that limit has no end date.

Ask your adviser before you plan around any date.

The Dimmer-Switch Calendar

Mark December 31, 2028 beside each of the four deductions: their last tax year.
Mark December 31, 2029 beside the SALT cap: the higher cap ends after that year.
Write the computed SALT amounts in pencil until IRS forms show them.
Look again each time Congress passes a tax law.

Common questions

Which years do the senior, tips and overtime deductions cover?

Tax years 2025 through 2028. They end after 2028.

Does the SALT cap really go back to $10,000?

Under current law, yes, from 2030. The cap is then $10,000 ($5,000 if married filing separately) with no income phase-down and no end date.

Could Congress extend these dates?

Congress can change any law, and we do not predict it. This page reports the law on November 6, 2026.

Official sources

Keep reading

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This page gives general information and education about current federal and state tax topics, including recent legislation, planning ideas, retirement and annuity rules, and court decisions. It is not tax, legal, accounting, investment, insurance or other professional advice, and it is not a substitute for advice from a qualified CPA, attorney or other adviser who knows your facts. Reading it does not create a CPA-client or any other professional relationship with Prem Tax and Accounting Corp. Prem Tax and Accounting Corp is a CPA firm, not a law firm. It does not sell insurance or investment products, and it does not recommend, rate or sell any annuity, fund or other product. A planning idea, a strategy name or an example here is not a recommendation to take or avoid any action.

Tax rules, thresholds, rates and deadlines change often, and Congress, the IRS, the courts and the states change how they apply them. Guidance on recent legislation is still being issued. We checked the figures against the official sources named on the page on the date shown (last reviewed November 6, 2026), but we do not promise that this page is complete, current or free of errors, and we do not update it the moment a rule changes. Where the rules are unsettled or guidance is still pending we say so. Amounts for a future year are labelled planning figures until the IRS or another agency publishes them. Examples use invented numbers and are for illustration only.

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Questions about how the new tax law or your year-end moves apply to you? Keshav Agrawal is a U.S. CPA and a Chartered Accountant (CA) from India. We prepare U.S. and Illinois returns, plan with you, and work alongside your financial adviser, insurance agent or attorney. We sell no investment or insurance products. Book a 10-minute call or send us a message.

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