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HR 8280
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SEPTIC Act

To amend the Internal Revenue Code of 1986 to provide an exclusion from gross income for certain wastewater management subsidies.

Introduced Apr 14, 2026

Latest action (Apr 14, 2026) Referred to the House Committee on Ways and Means.

Policy area
Issues
Economy & Taxes

Summary

This bill amends the Internal Revenue Code to exclude certain wastewater management subsidies from taxable income. Subsidies provided by state or local governments to homeowners for purchasing or installing wastewater management systems, such as septic tanks and cesspools, would not be counted as income for tax purposes. The bill expands existing tax law that previously only excluded energy conservation subsidies from income. The tax exclusion would apply to subsidies received after the bill's enactment.

AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.

Sponsor (1)

Actions (2)

  1. Apr 14, 2026 Referred to the House Committee on Ways and Means. · house
  2. Apr 14, 2026 Introduced in House

Similar bills (6)

Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.

Full text

IN THE HOUSE OF REPRESENTATIVES

April 14, 2026

Mr. Suozzi (for himself, Mr. Bilirakis, Mr. Bean of Florida, and Mr. Steube) 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 provide an exclusion from gross income for certain wastewater management subsidies.

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 “Septic Exclusion for Property owners through Tax-free Infrastructure Compensation Act” or the “SEPTIC Act”.

SEC. 2. MODIFICATIONS TO INCOME EXCLUSION FOR CERTAIN WASTEWATER MANAGEMENT SUBSIDIES.

(a) In General.—Section 136(a) of the Internal Revenue Code of 1986 is amended—

(1) by striking “any subsidy provided” and inserting “any subsidy—

“(1) provided”,

(2) by striking the period at the end and inserting “, or”, and

(3) by adding at the end the following new paragraph:

“(2) provided (directly or indirectly) by a State or local government to a resident of such State or locality for the purchase or installation of any wastewater management measure, but only if such measure is with respect to the taxpayer’s residence.”.

(b) Definition of Wastewater Management Measure.—Section 136(c) of such Code is amended—

(1) by striking “Energy Conservation Measure” in the heading thereof and inserting “Definitions”,

(2) by striking “In general” in the heading of paragraph

(1) and inserting “Energy conservation measure”, and

(3) by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following:

“(2) Wastewater management measure.—For purposes of this section, the term ‘wastewater management measure’ means any installation or modification of property primarily designed to manage wastewater (including septic tanks and cesspools) with respect to one or more dwelling units.”.

(c) Clerical Amendments.—

(1) The heading for section 136 of such Code is amended—

(A) by inserting “and wastewater” after “energy”, and

(B) by striking “provided by public utilities”.

(2) The item relating to section 136 in the table of sections of part III of subchapter B of chapter 1 of such Code is amended—

(A) by inserting “and wastewater” after “energy”, and

(B) by striking “provided by public utilities”.

(d) Effective Date.—The amendments made by this section shall apply to amounts received after the date of the enactment of this Act, in taxable years ending after such date. <all>

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