U.S. Senator Chuck Schumer from New York has called for the IRS to clear up confusion on the taxation of septic system improvements on Long Island. Some Suffolk County residents received tax bills after they signed up for a program that helps pay for septic upgrades to prevent nitrogen pollution.
The Septic Improvement Program gives state and county grants to contractors who install nitrogen-reducing systems. Contractors are able to give homeowners a reduced price of a new septic system. Upgrades can cost $10,000-$20,000.
The contractors pay taxes on the installation, but some homeowners received tax forms that show the grant as part of their personal income.
Senator Chuck Schumer says this is in effect double taxation, and the IRS needs to step in.
“The IRS should not tax people when they get help from the state or the county to improve their homes. Plain and simple.”
Schumer says programs like this help keep Long Island’s drinking water clean, and residents need to be encouraged to participate.
