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Tax Relief for Wastewater Management: New Rules for Homeowners.

This bill amends tax laws to allow homeowners to exclude from taxable income subsidies received from state or local governments for the purchase or installation of wastewater management systems, such as septic tanks. This means money received for these purposes will not be counted as taxable income, potentially reducing citizens' tax bills. These changes apply to amounts received after December 31, 2018.
Key points
State or local government subsidies for wastewater systems (e.g., septic tanks) for a principal residence will not be taxed.
The definition of wastewater management measures includes installations or modifications primarily designed to manage wastewater in dwelling units.
The changes are retroactive, applying to amounts received after December 31, 2018.
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Additional Information
Print number: 117_HR_2711
Sponsor: Rep. Suozzi, Thomas R. [D-NY-3]
Process start date: 2021-04-20