Source: United States House of Representatives – Congresswoman Haley Stevens (MI-11)
Washington, D.C. – Today, Michigan Congresswoman Haley Stevens (MI-11) introduced the Local Infrastructure Tax Cuts Act, legislation co-led by Reps. Debbie Dingell (D-MI) and Hillary Scholten (D-MI), to deliver targeted tax relief to Michiganders and strengthen the ability of townships to invest in critical local infrastructure.
Across Michigan, townships rely on Special Assessment Districts (SADs) to fund urgent projects like repairing aging roads, replacing water and sewer lines, upgrading stormwater systems, and restoring dams. These costs (often $5,000 or more per household) are directly levied on homeowners. Under current federal law, these locally imposed special assessment taxes are generally not deductible, leaving hardworking families to shoulder the costs.
The Local Infrastructure Tax Cuts Act closes this gap by allowing eligible low- and middle-income homeowners to deduct qualified special assessment taxes paid on their primary residence for projects such as transportation, public safety facilities, schools, water, and sewer systems.
“Michigan families are paying too much out of pocket to fix their roads, upgrade their water systems, or restore critical infrastructure in their communities,” said Rep. Stevens. “When homeowners are required to pay thousands of dollars for essential public infrastructure improvements, the federal tax code should provide relief — not make life more expensive. This bill delivers commonsense tax relief while helping our communities build and modernize the infrastructure they depend on.”
“Special Assessment Districts (SADs) allow our local communities to make necessary and targeted infrastructure improvements, but too often the costs fall directly on homeowners who can least afford them,” said Rep. Dingell. “Homeowners in Michigan and across the country are feeling financial stress from skyrocketing costs of living – we must ensure important local projects don’t also become an undue burden. This bill provides meaningful relief with tax deductions and will help families manage rising costs while ensuring communities can continue to invest in critical infrastructure.”
“Families shouldn’t have to worry about their taxes skyrocketing just because their community needs safer roads, reliable water lines, or upgraded sewer systems,” said Rep. Scholten. “Local infrastructure improvements benefit everyone, but too often the cost falls hardest on working- and middle-class homeowners. The Local Infrastructure Tax Cuts Act will provide real relief by allowing eligible taxpayers to deduct these special costs, keeping household budgets stable while communities make critical upgrades. I’m proud to partner with my Michigan colleagues to stand up for families and prove that investing in infrastructure can go hand in hand with lowering costs.”
Rep. Stevens wrote the Local Infrastructure Tax Cuts Act after hearing directly from local leaders in Oakland County and across Michigan. Specifically, the bill:
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Creates a new tax deduction for homeowners who have to pay a special assessment on their primary home imposed by a state or local government.
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Limits eligibility for this deduction to taxpayers with income below $107,500 (for single filers), $161,250 (for head of household filers), and $215,000 (for joint filers).
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Caps the deduction at $10,000 (or $5,000 for married individuals filing separately) per year.
The bill is endorsed by the Michigan Townships Association, the National Association of Towns and Townships, and townships across Michigan.
“Special assessments are an essential tool allowing municipalities to provide critical public services and infrastructure improvements to their community—from fire service to sidewalks, water systems to streetlights. The Michigan Townships Association thanks Congresswoman Stevens for this legislation, which will assist Michigan residents in low- and moderate-income households by allowing them to claim a local special assessment as a federal income tax deduction.” – Michigan Townships Association
“The National Association of Towns and Townships strongly supports the Local Infrastructure Tax Cuts Act. This legislation offers long-overdue federal recognition of the financial burden local infrastructure places on rural and small-town homeowners, especially those living in legacy communities with aging roads, water systems, and public facilities. By making special assessment taxes deductible, Congress can empower local governments to invest in critical infrastructure while easing the cost burden on middle- and working-class families. The National Association of Towns and Townships supports this commonsense measure, and we thank Representative Stevens for her leadership on this issue.” Heidi M. Fought, President, National Association of Towns and Townships
“This Bill incentivizes property owners and municipalities to pursue much needed but often hard to swallow projects. As our infrastructure ages, we need to have creative thinking that helps with the solution.” – Rik Kowall, White Lake Township Supervisor
“Bloomfield has taken on approximately $43 million in Special Assessment Districts (SADs) over the past seven years to address road and water infrastructure needs resulting from insufficient funding from local, county, and state governments. Due to the deterioration of our roads, water, and sewer systems, neighborhoods have been forced to step up and pay thousands of dollars out of pocket to cover the costs of these necessary upgrades. Our residents need relief and support. Providing assistance would help homeowners manage rising costs and may allow many to remain in their homes. Those most affected, and from whom we hear most often, are senior citizens, retirees, and young families purchasing their first homes.” – Mike McCready, Bloomfield Township Supervisor
“This would be greatly appreciated by our residents, who must pay to reconstruct or repave roads in their subdivisions. Those roads belong to the county, but because there is no funding for residential roads, our homeowners must pay to repair their own streets. Road construction costs almost doubled in the past five years, making a special assessment a heavy burden on our residents. This proposal would provide sorely needed relief.” – Jonathan Warshay, West Bloomfield Township Supervisor
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