H.R. 7561: Local Infrastructure Tax Cuts Act
Sponsor
Haley Stevens
Democrat · MI-11
Bill Progress
Latest Action · Feb 12, 2026
Referred to the House Committee on Ways and Means.
Why it matters
This is an attempt to make SALT relief look less like a tax break for upper-income households and more like targeted help for middle-income homeowners paying state, local, and infrastructure-related taxes. If it passed, taxpayers under the income cutoffs could still claim up to $10,000 in SALT deductions, married filing separately would be capped at $5,000, and people hit with special assessments for things like sewer, road, or similar local projects could get a new federal deduction; higher earners above the thresholds would lose the SALT deduction entirely.
H.R. 7561 Common Questions
How much SALT can I deduct under the Local Infrastructure Tax Cuts Act if my income is over the limit?
Under the Local Infrastructure Tax Cuts Act, the SALT deduction limit drops to $0 if modified adjusted gross income exceeds the threshold amount (Section 2).
What income limits would cut off the SALT deduction under HR 7561?
According to HR 7561 Section 2, the cutoff is $215,000 for joint filers, $161,250 for heads of household, and $107,500 for other taxpayers.
How much SALT can married filing separately taxpayers deduct under the Local Infrastructure Tax Cuts Act?
Under the Local Infrastructure Tax Cuts Act, married individuals filing separately can deduct up to $5,000, unless their modified adjusted gross income exceeds the threshold in Section 2.
Can I still deduct $10000 in state and local taxes under HR 7561?
Yes. Under HR 7561 Section 2, taxpayers other than married filing separately generally keep a $10,000 SALT cap, unless their modified adjusted gross income is above the threshold.
Can special assessment taxes for local infrastructure be deducted on federal taxes under this bill?
Yes. The Local Infrastructure Tax Cuts Act adds a federal deduction for qualified special assessment taxes, subject to the bill's limits and definitions (Section 3).
Does the bill let you deduct special assessment taxes only for your primary home?
Yes. Under the Local Infrastructure Tax Cuts Act, the deduction for qualified special assessment taxes is allowed only for a taxpayer's principal residence (Section 3).
What types of infrastructure projects qualify for the new special assessment tax deduction?
According to HR 7561 Section 3, qualifying projects include transportation, schools, hospitals, police, fire, emergency response, utilities, and dam restoration.
Can a special assessment district tax for water, sewer, or stormwater projects be deductible under HR 7561?
Yes. Under HR 7561 Section 3, special assessment taxes tied to water, waste-water, or stormwater infrastructure can qualify if they directly benefit the real property.
Which property owners could claim the new special assessment tax deduction under the Local Infrastructure Tax Cuts Act?
Under the Local Infrastructure Tax Cuts Act, owners of real property in a designated special assessment district may qualify if the tax funds a community infrastructure project benefiting that property and the home is their principal residence (Section 3).
When would the SALT and special assessment tax changes take effect under HR 7561?
According to HR 7561 Sections 2 and 3, both changes apply to taxable years beginning after December 31, 2026.
Based on H.R. 7561 bill text
HR7561 Legislative Journey
House: Committee Action
Feb 12, 2026
Referred to the House Committee on Ways and Means.
About the Sponsor
Haley Stevens
Democrat, Michigan's 11th congressional district · 7 years in Congress
Committees: Science, Space, and Technology, House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, Education and Workforce
View full profile →
Cosponsors (3)
All 3 cosponsors are Democrats. Cosponsors represent 1 state: Michigan.
Committee Sponsors
Ways and Means Committee
0 of 45 committee members cosponsored
No committee members have cosponsored this bill
19 Democrats across this committee haven't cosponsored yet. Mobilize their constituents
What laws does H.R. 7561 change?
1 changes
Sections Amended
Section 164(a) of Internal Revenue Code of 1986
inserting after paragraph (4) the following new paragraph: ``(5) Qualified special assessment taxes
H.R. 7561 Quick Facts
- Committee
- Ways and Means
- Chamber
- House
- Policy
- Taxation
- Introduced
- Feb 12, 2026
Referred to the House Committee on Ways and Means.
Feb 12, 2026
H.R. 7561 Bill Text
“To amend the Internal Revenue Code of 1986 to modify the limitation on individual deductions for certain state and local taxes and to allow a deduction for qualified special assessment taxes, and for other purposes.”
Source: U.S. Government Publishing Office
Get notified when H.R. 7561 moves
Committee votes, floor action, cosponsor changes — straight to your inbox.
Bill alerts + Legisletter's monthly briefing. Unsubscribe anytime.
Taxation Bills
9 related bills we're tracking
Affordable Housing Credit Improvement Act of 2025
Referred to the House Committee on Ways and Means.
Apr 8, 2025
To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.
Referred to the House Committee on Ways and Means.
Jan 16, 2025
No Tax Breaks for Outsourcing Act
Referred to the House Committee on Ways and Means.
Feb 5, 2025
Military Spouse Hiring Act
Referred to the House Committee on Ways and Means.
Mar 11, 2025
More Homes on the Market Act
Referred to the House Committee on Ways and Means.
Feb 13, 2025
American Innovation and R&D Competitiveness Act of 2025
Referred to the House Committee on Ways and Means.
Mar 10, 2025
Credit for Caring Act of 2025
Referred to the House Committee on Ways and Means.
Mar 11, 2025
Improve and Enhance the Work Opportunity Tax Credit Act
Referred to the House Committee on Ways and Means.
Feb 10, 2025
Travel Trailer and Camper Tax Parity Act
Referred to the House Committee on Ways and Means.
Jan 13, 2025
Trending Right Now
Bills gaining momentum across Congress
Federal Extreme Risk Protection Order Act of 2026
Referred to the House Committee on the Judiciary.
Feb 17, 2026
ALERT Act
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Feb 20, 2026
Fair Housing for Survivors Act of 2026
Referred to the House Committee on the Judiciary.
Mar 5, 2026
Tracking Taxation in Congress? Monitor bills, track cosponsor momentum, and launch advocacy campaigns — all from one advocacy platform.