Rep. Zeldin Statement on One of the Key Ways Forward Following IRS’ Suffolk County Septic Grant Ruling

PATCHOGUE, NY - Today, Congressman Lee Zeldin (R, NY-1) issued the following statement on one of the key ways forward following the Internal Revenue Service’s (IRS) ruling that qualified grants received under Suffolk County’s Septic Improvement Program are taxable income of the homeowner:

“When it comes to hardworking Long Islanders’ taxes, there has been too much shooting from the hip. We must protect these hardworking taxpayers, and this complex issue requires an effective solution,” said Congressman Zeldin. “This program’s goals are laudable, but we must ensure people can actually use the program to achieve those goals. As I work with all levels of government to find a solution, we have to get it right and not irresponsibly try to cut any corners. For example, some have claimed that Suffolk County’s program is interchangeable with the State of Maryland’s program when in reality there are drastic, critical differences in the way these programs are administered. I would recommend county officials appeal to the IRS to revisit this program if they would like it to fall under the General Welfare Exclusion or another exclusion and not be considered taxable income on the part of the homeowner. However, due to the urgency of this situation, we are running the gamut on every option.”

In 2017, Suffolk County initiated the Septic Improvement Program, which provided grants for homeowners to replace old septic systems that discharge nitrogen pollution. In January 2020, the IRS ruled that these grants would be taxable to the homeowner as gross taxable income.