What does Preamble of HR 7561 do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment modifies the limitation on individual deductions for certain state and local taxes. It also aims to allow a deduction for qualified special assessment taxes.

What does SHORT TITLE. of HR 7561 do?

This bill is formally titled the Local Infrastructure Tax Cuts Act.

What does MODIFICATION OF LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN of HR 7561 do?

This section modifies the limitation on individual deductions for certain state and local taxes. It amends Section 164(b)(7) of the Internal Revenue Code of 1986. The 'applicable limitation amount' is $0 for taxpayers with modified adjusted gross income exceeding a threshold amount. The limitation amount is $5,000 for married individuals filing separately and $10,000 for other taxpayers. Threshold amounts are established based on filing status: $215,000 for joint returns, $161,250 for head of household, and $107,500 for other taxpayers. Modified adjusted gross income is defined as adjusted gross income increased by certain exclusions. Dollar amounts in the section are adjusted for inflation beginning in 2028, using the cost-of-living adjustment. The amendment applies to taxable years beginning after December 31, 2026.

What does DEDUCTION ALLOWED FOR QUALIFIED SPECIAL ASSESSMENT TAXES. of HR 7561 do?

This section amends the Internal Revenue Code of 1986 to allow a deduction for qualified special assessment taxes. A 'qualified special assessment tax' is defined as a tax imposed by a state, possession, political subdivision, or the District of Columbia on real property within a designated special assessment district. The tax must be used to fund a community infrastructure project that directly benefits the real property. ‘Community infrastructure’ includes transportation projects, schools, hospitals, utility infrastructure, and dam restoration projects, among others. The deduction is limited to taxes paid or accrued with respect to a taxpayer’s principal residence. The amendments apply to taxable years beginning after December 31, 2026.

Back to bills

Local Infrastructure Tax Cuts Act — HR. 7561

Last updated: 2/12/2026 · Introduced: 2/12/2026

Author: Haley Stevens (D-MI)

TL;DR (AI)

This bill modifies the limitation on individual deductions for state and local taxes, setting a $10,000 cap for most taxpayers and $5,000 for those filing separately, with higher income thresholds and inflation adjustments starting in 2028.
The bill allows taxpayers to deduct qualified special assessment taxes paid on their principal residence, provided the funds are used for community infrastructure projects that directly benefit the property.
These changes apply to taxable years beginning after December 31, 2026.

119th Congressin committeeOfficial page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account