A bill to amend the Internal Revenue Code of 1954 to allow a deduction for State or local taxes imposed on the rental of dwelling units.

Amends the Internal Revenue Code to allow a tax deduction for State and local taxes paid or incurred for the rental of a dwelling unit. States that for purposes of this Act the term "dwelling unit" means a housing unit occupied by a tenant as a principal residence, and excludes a facility (such as a hotel or motel room) which is occupied by a transient on a short-term or temporary basis.