119-hr2940

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2940 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2940

 To amend the Internal Revenue Code of 1986 to allow an investment 
 credit for certain water reuse projects.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 April 17, 2025

 Mr. LaHood (for himself, Ms. Sanchez, Ms. Tenney, and Mr. Schneider) 
 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 allow an investment 
 credit for certain water reuse projects.

 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 ``Advancing Water Reuse Act''.

SEC. 2. QUALIFYING WATER REUSE PROJECT CREDIT.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 

section 48E the following new section:

``

SEC. 48F. QUALIFYING WATER REUSE PROJECT CREDIT.

 ``

    (a) In General.--For purposes of 

section 46, the qualifying water 
reuse project credit for any taxable year is an amount equal to 30 
percent of the qualified investment for such taxable year with respect 
to any qualifying water reuse project of the taxpayer.
 ``

    (b) Qualified Investment.--
 ``

    (1) In general.--For purposes of subsection

    (a) , the 
 qualified investment with respect to any qualifying water reuse 
 project for any taxable year is the basis of qualified property 
 placed in service by the taxpayer during such taxable year 
 which is part of such qualifying water reuse project.
 ``

    (2) Qualified property.--For purposes of this subsection, 
 the term `qualified property' means property--
 ``
        (A) which is tangible property,
 ``
        (B) with respect to which depreciation (or 
 amortization in lieu of depreciation) is allowable, and
 ``
            (C) which is--
 ``
            (i) constructed, reconstructed, or 
 erected by the taxpayer, or
 ``
            (ii) acquired by the taxpayer if the 
 original use of such property commences with 
 the taxpayer.
 ``

    (3) Certain qualified progress expenditures rules made 
 applicable.--Rules similar to the rules of subsections
            (c) (4) and
            (d) of 

section 46 (as in effect on the day before the 
 enactment of the Revenue Reconciliation Act of 1990) shall 
 apply for purposes of this section.
 ``
            (c) Qualifying Water Reuse Project.--For purposes of this 
section, the term `qualifying water reuse project' means a project 
which--
 ``

    (1) installs, replaces, or modifies an onsite water 
 recycling system within an industrial, manufacturing, data 
 center, or food processing facility,
 ``

    (2) replaces the use of freshwater, such as groundwater, 
 with recycled water from a municipal water provider for the 
 production of goods or provision of services, or
 ``

    (3) builds or expands a municipal water recycling system 
 for the purpose of securing recycled water for the production 
 of goods or provision of services.
 ``
            (d) Special Rule for Certain Property Transferred to Utilities.--
 ``

    (1) In general.--In the case of any qualified transfer 
 property transferred from a person to a utility--
 ``
        (A) such property shall be treated as qualified 
 property with respect to such person,
 ``
        (B) such person shall be treated as having placed 
 such property in service at the time of such transfer,
 ``
            (C) the basis of such person in such property 
 which is taken into account under subsection

    (b)

    (1) shall be the basis of such person in such property at 
 the time of such transfer, and
 ``
            (D) such property shall not be taken into account 
 for purposes of determining any credit allowed under 
 this section to such utility.
 ``

    (2) Qualified transfer property.--For purposes of this 
 subsection, the term `qualified transfer property' means 
 property transferred from a person to a utility if--
 ``
        (A) such property is qualified property with 
 respect to such utility, and
 ``
        (B) such person and such utility enter into a 
 binding written agreement under which such person is 
 treated as eligible for the credit allowed under this 
 section with respect to such property in lieu of such 
 utility.
 ``

    (e) Termination.--This section shall not apply to any property 
the construction of which begins after December 31, 2032.''.

    (b) Part of Investment Credit.--

Section 46 of such Code is amended 
by striking ``and'' at the end of paragraph

    (6) , by striking the period 
at the end of paragraph

    (7) and inserting ``, and'', and by adding at 
the end the following new paragraph:
 ``

    (8) the qualifying water reuse project credit.''.
            (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to 

section 48E the following new 
item:

``

Sec. 48F. Qualifying water reuse project credit.''.
            (d) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this section under 
rules similar to the rules of 

section 48
            (m) of the Internal Revenue 
Code of 1986 (as in effect on the date of the enactment of the Revenue 
Reconciliation Act of 1990).
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