The fight on Capitol Hill is revived by Trump's pledge to repeal SALT caps.

• Lawmakers are preparing for a fight over the SALT tax deduction, which has a limit of $10,000.
• Discussions on Capitol Hill are underway to reinstate and sustain the full tax exemption.
• Some House Republicans are advocating for alternative payment methods for Donald Trump's tax plan.

Next year, a fight will emerge among house lawmakers over preserving the original state and local tax deduction, with former President Donald Trump's words being used as leverage to pressure their colleagues.

Taxpayers can deduct up to $10,000 of state and local taxes they have already paid through the SALT deduction. Historically, the majority of those who claim this deduction reside in high tax states such as New York, Connecticut, New Jersey, and California.

The Trump tax bill in 2017 introduced a cap on SALT deductions, which was used as a pay-for method. Prior to the bill, there was no cap on SALT deductions.

Lawmakers are currently devising a plan to preserve an unlimited SALT tax deduction in the upcoming Congress, as the SALT cap provision from the Trump tax bill will expire on December 31, 2025.

If Trump is re-elected and the Republicans maintain a majority in both houses, some House Republicans are urging their party's leadership to explore alternative funding methods for Trump's tax plan, which involves reducing the corporate tax rate from 21% to 15%, as stated by Rep. Andrew Garbarino, R-N.Y.

Despite his bill causing a $10,000 cap on the SALT deduction, some recent conversations have featured Trump's new stance on restoring the full SALT deduction.

Recently, Garbarino, along with Reps. Anthony D'Esposito and Nick LaLota, met with House Ways & Means Committee chairman Jason Smith on Capitol Hill to discuss restoring the full SALT deduction.

The three New York Republicans used Trump's promise on social media to "get SALT back" as a way to persuade Smith to maintain the SALT deduction's current form once it expires in late 2021. The House Ways & Means Committee is responsible for drafting and passing tax legislation.

Garbarino told CNBC that Smith said they were considering all payment options.

Rep. Young Kim, R-Calif., stated that the SALT cap is negatively affecting her constituents and that Trump's latest stance on SALT indicates he has taken into account the concerns of Americans nationwide who are being impacted by the cap.

Kim assured that they would secure a seat at the table during discussions for the 2025 tax package, as lawmakers in SALT reliant states also aim to maintain the original deduction in the next Congress.

At least a dozen House Republicans won't support a tax bill with a SALT cap at $10,000, and they will fight for the cap to be at a much higher level, according to Garbarino.

According to Rep. Josh Gottheimer, D-N.J., some House Democrats are proposing to retain the standard SALT deduction after its expiration.

If the SALT cap expires in 2025, New Jersey House lawmakers want to see it happen. If Democrats and Republicans from states that rely on the full SALT deduction are critical votes in the House, they will block legislation that maintains the cap.

"Gottheimer stated that if there is a five-seat Democratic majority, we will have enough representatives from SALT states to reinstate the full deduction and reduce taxes for middle-class families, but it will be a challenging fight."