Representatives Greg Steube (R-FL), Aaron Bean (R-FL), and Gus Bilirakis (R-FL) are teaming up with Representative Tom Suozzi (D-NY) to introduce a bipartisan bill to create a federal income-tax exclusion for financial assistance provided to homeowners for septic-system replacement.
The SEPTIC Act rules that grants, subsidies, or financial assistance provided by state and local governments to fix, maintain, replace, or connect septic tanks are not treated as taxable income under federal law.
In Florida alone, 2.6 million households (30% of residents) use septic systems, which is 12% of all septic systems in the United States, and despite many state and local governments providing financial assistance for septic tanks, federal tax law still treats some of this as taxable income.
"Families shouldn't be taxed for making critical upgrades that protect their health, water quality, and their communities," Rep. Steube said in a press release. "Florida represents 12% of the United States' septic systems. Failing septic systems pose serious risk to our water supply and public health. In Florida alone, approximately 2.6 million households rely on septic systems, making this an issue that impacts millions of families across our state."
"Florida's 2.6 million septic system households shouldn't be taxed for improving their wastewater systems and protecting our clean water," Rep. Bean said. "The SEPTIC Act ensures septic replacement grants aren't treated as taxable income, helping families upgrade failing systems, protect public health, and safeguard local waterways without unnecessary financial burden."
Rep. Bilirakis also commented on the effort, saying, "Outdated septic systems in Hernando, Citrus, and Pasco Counties threaten the health of our waterways and communities." "This commonsense legislation supports homeowners, strengthens infrastructure, and helps preserve the waterways that are vital to our economy and way of life," he noted.
