119-hr1871

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1871 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1871

To amend the Internal Revenue Code of 1986 to expand the exclusion for 
 certain conservation subsidies to include subsidies for water 
 conservation or efficiency measures, storm water management measures, 
 and wastewater management measures.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 5, 2025

 Mr. Huffman (for himself, Mr. Moore of Utah, and Ms. Chu) 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 expand the exclusion for 
 certain conservation subsidies to include subsidies for water 
 conservation or efficiency measures, storm water management measures, 
 and wastewater management measures.

 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 ``Water Conservation Rebate Tax Parity 
Act''.

SEC. 2. MODIFICATIONS TO INCOME EXCLUSION FOR CONSERVATION SUBSIDIES.

    (a) In General.--Subsection

    (a) of 

section 136 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 a 
 comma, and

    (3) by adding at the end the following new paragraphs:
 ``

    (2) provided (directly or indirectly) by a public utility 
 to a customer, or by a State or local government to a resident 
 of such State or locality, for the purchase or installation of 
 any water conservation or efficiency measure,
 ``

    (3) provided (directly or indirectly) by a storm water 
 management provider to a customer, or by a State or local 
 government to a resident of such State or locality, for the 
 purchase or installation of any storm water management measure, 
 or
 ``

    (4) 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 
 principal residence.''.

    (b) Conforming Amendments.--

    (1) Definition of water conservation or efficiency measure 
 and storm water management measure.--

Section 136
            (c) of the 
 Internal Revenue Code of 1986 is amended--
        (A) by striking ``Energy Conservation Measure'' in 
 the heading thereof and inserting ``Definitions'',
        (B) by striking ``In general'' in the heading of 
 paragraph

    (1) and inserting ``Energy conservation 
 measure'', and
            (C) by redesignating paragraph

    (2) as paragraph

    (5) and by inserting after paragraph

    (1) the following:
 ``

    (2) Water conservation or efficiency measure.--For 
 purposes of this section, the term `water conservation or 
 efficiency measure' means any evaluation of water use, or any 
 installation or modification of property, the primary purpose 
 of which is to reduce consumption of water or to improve the 
 management of water demand with respect to one or more dwelling 
 units.
 ``

    (3) Storm water management measure.--For purposes of this 
 section, the term `storm water management measure' means any 
 installation or modification of property primarily designed to 
 reduce or manage amounts of storm water with respect to one or 
 more dwelling units, including an installation or modification 
 to prevent or reduce the impacts of storm water-caused flooding 
 to such property.
 ``

    (4) 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.''.

    (2) Definition of public utility.--

Section 136
            (c) (5) of 
 such Code (as redesignated by paragraph

    (1)
            (C) ) is amended by 
 striking subparagraph
        (B) and inserting the following:
 ``
        (B) Public utility.--The term `public utility' 
 means a person engaged in the sale of electricity, 
 natural gas, or water to residential, commercial, or 
 industrial customers for use by such customers.
 ``
            (C) Storm water management provider.--The term 
 `storm water management provider' means a person 
 engaged in the provision of storm water management 
 measures to the public.
 ``
            (D) Person.--For purposes of subparagraphs
        (B) and
            (C) , the term `person' includes the Federal 
 Government, a State or local government or any 
 political subdivision thereof, or any instrumentality 
 of any of the foregoing.''.

    (3) Clerical amendments.--
        (A) The heading of 

section 136 of such Code is 
 amended--
            (i) by inserting ``and water'' after 
 ``energy'', and
            (ii) by striking ``provided by public 
 utilities''.
        (B) 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--
            (i) by inserting ``and water'' after 
 ``energy'', and
            (ii) by striking ``provided by public 
 utilities''.
            (c) Effective Date.--The amendments made by this section shall 
apply to amounts received after December 31, 2021.
            (d) No Inference.--Nothing in this Act or the amendments made by 
this Act shall be construed to create any inference with respect to the 
proper tax treatment of any subsidy received directly or indirectly 
from a public utility, a storm water management provider, or a State or 
local government for any water conservation or efficiency measure, 
storm water management measure, or wastewaster management measure 
before January 1, 2022.
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