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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4897 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4897
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 SENATE OF THE UNITED STATES
July 31, 2024
Ms. Butler (for herself, Mr. Padilla, and Mr. Hickenlooper) introduced
the following bill; which was read twice and referred to the Committee
on Finance
_______________________________________________________________________
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 wastewater management measure before
January 1, 2022.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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