Bill · H.R. 7561· House(119-HR-7561)
Local Infrastructure Tax Cuts Act
- Introduced
- 2/12/2026
- Last activity
- 2/12/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Haley Stevens
- Cosponsors
- - 3 - 0
- Introduced
- In Committee
What this bill would do
This bill is called the Local Infrastructure Tax Cuts Act and was introduced in the House of Representatives on February 12, 2026. It aims to change how individual deductions work for certain state and local taxes under the Internal Revenue Code of 1986. The legislation sets specific limitation amounts for deductions based on a taxpayer's modified adjusted gross income and filing status. It also allows a new deduction for qualified special assessment taxes used for community infrastructure projects. Finally, the bill outlines rules for when these changes take effect for future taxable years.
Yes· 3 of 17
Does this cut taxes for middle-income families?+4
The bill provides targeted state and local tax deductions and a new deduction for special assessment taxes for qualifying middle-class homeowners.
Does this repair or build roads and bridges?+4
Facilitates funding and deductions for local transportation and community infrastructure projects.
Would middle-income households be better off under this?+4
Provides clear tax deduction tiers and benefits for middle-class taxpayers below the income threshold.
The opposite· 3 of 4
Would people with substantial wealth be better off under this?-5
High-net-worth individuals are excluded from claiming the targeted deductions due to income caps.
Would the very wealthiest people be better off under this?-5
Ultra-high-net-worth individuals receive a negative impact as their deduction eligibility is eliminated.
Would billionaires be better off under this?-5
Billionaires exceed the modified adjusted gross income thresholds and receive a deduction limit of zero.
Who it would affect, and how
Potential Positive Impacts for People
-
Section 2 modifies the limitation on individual deductions for certain state and local taxes by setting the deduction amount at $10,000 for standard taxpayers, $5,000 for married individuals filing separately, and includes threshold amounts such as $215,000 for joint returns. This provision might be considered positive because it explicitly establishes these tiered deduction and income threshold amounts for taxpayers.
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Section 3 allows a new deduction for qualified special assessment taxes imposed on real property located within a special assessment district for funding community infrastructure. This provision might be considered positive because it permits a deduction for taxes paid toward community infrastructure projects like transportation, schools, hospitals, and utilities, provided the taxes are paid with respect to the taxpayer's principal residence.
Potential Negative Impacts for People
- Section 2 sets the applicable limitation amount for individual deductions to $0 for any taxpayer whose modified adjusted gross income exceeds specific threshold amounts, such as $215,000 for a joint return. This provision might be considered a negative consequence or burden because taxpayers earning above those specific income thresholds completely lose the ability to claim this deduction.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Reduces Middle Class Taxes+4Increases Wealthy Taxes+3Improves Economic Growth+2Increases Job Creation+2
- Environment Energy And Infrastructure
- Improves Roads And Bridges+4Improves Public Transit+3Improves Rural Development+2Increases Renewable Energy Investment+2
- Demographic And Interest Groups
- Good For Middle Class Households+4Good For Middle Aged+3Good For Retirees+2Good For Rural Residents+2Good For Seniors+2Good For Urban Residents+2Good For Billionaires-5Good For High Net Worth Individuals-5Good For Ultra High Net Worth Individuals-5Good For High Income Households-4
- Education And Technology
- Improves Internet Access+2
- Governance And Ideology
- Increase States Rights+2
- Social Issues And Justice
- Improves Affordable Housing+2
- 2/12/2026
- Referred to the House Committee on Ways and Means.
- 3 Cosponsors added.
- Introduced in House
Debbie DingellDemocrat · Michigan
Kristen McDonald RivetDemocrat · Michigan
Hillary ScholtenDemocrat · Michigan