Local Infrastructure Tax Cuts Act

This bill would change the federal income tax deduction for state and local taxes starting with tax years after December 31, 2026. Taxpayers whose modified adjusted gross income is above set thresholds ($215,000 for joint returns, $161,250 for heads of household, and $107,500 for others) could deduct $0. Other taxpayers could deduct up to $10,000, or $5,000 for married people filing separately, with the amounts adjusted for inflation after 2027. The bill would also allow a deduction for special assessment taxes charged on a taxpayer's principal residence to pay for local infrastructure projects. Examples include roads, schools, utilities, and dam restoration. This deduction would count toward the same limit.

Full text and official record on Congress.gov

Sponsors

• Haley M. Stevens Democrat sponsor
• 3 cosponsors