Suozzi Introduces Bipartisan SEPTIC Act to Protect Homeowners and Improve Water Quality Nationwide

Washington, D.C. - Congressman Tom Suozzi (D-Long Island, Queens), a member of the House Ways and Means Committee, introduced the bipartisan SEPTIC Act alongside Co-Leads Congressmen Gus Bilirakis (R-FL), Aaron Bean (R-FL), and Greg Steube (R-FL). The Septic Exclusion for Property owners through Tax-free Infrastructure Compensation Act will ensure that grants provided to homeowners for septic system upgrades are not taxed as income. The bill would codify existing IRS guidance for Suffolk County and expand it nationwide, providing clarity and financial relief to families seeking to upgrade outdated and failing septic systems.

"Families shouldn't be taxed for doing the right thing," said Congressman Tom Suozzi. "Today, on Tax Day, Americans across the country are reminded of how much they already pay in taxes. Upgrading a septic system protects our drinking water, safeguards public health, and preserves our environment. The federal government should be encouraging that, not making it more expensive. This commonsense, bipartisan bill reduces the tax burden on homeowners who are trying to do the responsible thing for their families and their communities."

"Outdated septic systems in Hernando, Citrus, and Pasco Counties threaten the health of our waterways and communities," said Congressman Gus Bilirakis. "I am proud to co-lead the SEPTIC Act to authorize septic replacement grants that will help modernize aging systems, reduce pollution, and protect Florida's natural resources for future generations. This commonsense legislation supports homeowners, strengthens infrastructure, and helps preserve the waterways that are vital to our economy and way of life."

"Florida's 2.6 million septic system households shouldn't be taxed for improving their wastewater systems and protecting our clean water. 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. I am pleased to join Congressman Suozzi in this effort," said Congressman Aaron Bean.

"Families shouldn't be taxed for making critical upgrades that protect their health, water quality and their communities," said Congressman Greg Steube. "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. The SEPTIC Act ensures homeowners can access assistance to fix these systems without being hit with an unexpected tax bill."

Across the country, millions of Americans rely on septic systems to manage wastewater. Aging and failing systems can contaminate groundwater, harm local ecosystems, and pose serious public health risks. While many states and localities offer grants and financial assistance to help residents cover the costs of upgrading to more efficient septic systems that mitigate pollution and keep our water safe, uncertainty in the tax code has created confusion and, in some cases, an unintended tax burden.

The SEPTIC Act would fix this problem by ensuring that homeowners are not penalized for participating in programs designed to protect public health and the environment.

"This is about common sense," Suozzi added. "We should be working together to lower costs, make government smarter, and incentivize solutions that protect our environment."

"Outdated and failing septic systems are an ongoing threat to the water our communities rely on every day," said Julie Tighe, President of the New York League of Conservation Voters. "By reducing costs and making it easier to replace these systems, the SEPTIC Act will help protect the communities that need it most. Everyone deserves access to clean water, and we applaud Rep. Suozzi for his leadership in protecting this fundamental human right."

"The Nassau County Soil and Water Conservation District today strongly supports bipartisan action for legislation to codify a tax exclusion for septic replacement grants. Clean water is essential for every resident, and excluding these grants from taxation will help more homeowners upgrade their systems, improving water quality across the county," said Derek Betts of the Nassau County Soil and Water Conservation District.

"The New York Section of the American Water Works Association (NYSAWWA) supports the Septic Act as a critical solution for New York and the entire Nation. The need is especially critical on Long Island where failing septic systems are a major driver of nitrogen pollution and water quality degradation. By removing the tax burden on septic system replacement grants, this bill makes it easier for homeowners to upgrade systems and protects drinking water sources, local waterways, and the region's economy. We appreciate the leadership behind this effort and stand ready to advance it," said Jenny Ingrao, Executive Director NYSAWWA.

This bill also has the support of Food and Water Watch.

More information on the bill can be found here. Bill text is attached.

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