Local Infrastructure Tax Cuts Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7561 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7561 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. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 12, 2026 Ms. Stevens (for herself, Mrs. Dingell, Ms. Scholten, and Ms. McDonald Rivet) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL 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. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Local Infrastructure Tax Cuts Act''. SEC. 2. MODIFICATION OF LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE AND LOCAL TAXES. (a) In General.--Section 164(b)(7) of the Internal Revenue Code of 1986 is amended to read as follows: ``(7) Applicable limitation amount.-- ``(A) In general.--For purposes of this subsection, the term `applicable limitation amount' means-- ``(i) $0 in the case of any taxpayer whose modified adjusted gross income exceeds the threshold amount, ``(ii) $5,000 in the case of a married individual filing a separate return, and ``(iii) $10,000 in the case of any taxpayer not described in clause (i) or (ii). ``(B) Threshold amount.--For purposes of this paragraph, the threshold amount shall be-- ``(i) in the case of a joint return, $215,000, ``(ii) in the case of a head of household (as defined in section 2(b)), $161,250, and ``(iii) in the