U.S. Senators Deb Fischer (R-Neb.) and Amy Klobuchar (D-Minn.) released the following statements after the Internal Revenue Service (IRS) issued guidance on the tax status of lead water pipe replacement grants, including those funded by the 2021 bipartisan infrastructure law. This clarification was made in response to a recent letter led by SenatorsFischer and Klobuchar that called on the IRS to clarify the tax status of the grants so property owners could move forward with their replacement projects.
“I’m pleased that the IRS has listened to our concerns and acted swiftly. Now, state and local governments across the country can start the critical work of removing dangerous lead service lines,” said Senator Fischer.
“Our country has an estimated 9.2 million service lines leaching lead into drinking water, which is putting Americans’ health at risk. Following Senator Fischer and my calls to the IRS, the agency is issuing new guidance so that state and local governments can begin to work with residents to remove these dangerous lead service lines across the country,” said Senator Klobuchar.
Background:
Earlier this month, Senators Fischer and Klobuchar led a bipartisan letter to IRS Commissioner Werfel urging the agency to make clear that property owners will not owe taxes on the cost of having their lead service lines replaced through the Infrastructure Investment and Jobs Act and other state and local programs.
Many lead pipe replacements have been on hold due to concerns that the IRS could treat lead pipe replacement grants as income, potentially creating significant tax liabilities for property owners.
The 2021 bipartisan infrastructure law is a historic investment in lead pipe removal and replacements for communities around the country.
“I’m pleased that the IRS has listened to our concerns and acted swiftly. Now, state and local governments across the country can start the critical work of removing dangerous lead service lines,” said Senator Fischer.
“Our country has an estimated 9.2 million service lines leaching lead into drinking water, which is putting Americans’ health at risk. Following Senator Fischer and my calls to the IRS, the agency is issuing new guidance so that state and local governments can begin to work with residents to remove these dangerous lead service lines across the country,” said Senator Klobuchar.
Background:
Earlier this month, Senators Fischer and Klobuchar led a bipartisan letter to IRS Commissioner Werfel urging the agency to make clear that property owners will not owe taxes on the cost of having their lead service lines replaced through the Infrastructure Investment and Jobs Act and other state and local programs.
Many lead pipe replacements have been on hold due to concerns that the IRS could treat lead pipe replacement grants as income, potentially creating significant tax liabilities for property owners.
The 2021 bipartisan infrastructure law is a historic investment in lead pipe removal and replacements for communities around the country.
