H.R.7561

Local Infrastructure Tax Cuts Act allows deduction for qualified special assessment taxes and modifies state and local tax deduction limits.

The Local Infrastructure Tax Cuts Act amends the Internal Revenue Code to allow a deduction for qualified special assessment taxes, which are taxes imposed by states, U.S. possessions, or political subdivisions on real property in special assessment districts. This deduction is limited to taxes paid on the taxpayer's principal residence. The bill also modifies the limitation on individual deductions for certain state and local taxes, adjusting the applicable limitation amount based on modified adjusted gross income and inflation.