Bill > SB2644

This bill establishes a non-refundable income tax credit for individuals who install new residential water conservation systems, defined as systems for capturing rainfall or collecting and reusing gray water or recycled water, on their property. The credit will cover fifty percent of the construction costs incurred after December 31, 2017, up to a maximum of $1,000 per system, provided the system is approved by the department of health. If multiple owners share the cost of a single system, the credit will be divided proportionally. This credit cannot be claimed for costs already deducted or for which a deduction is taken under federal tax law, and the basis of the property for depreciation will be reduced by the credit amount. The credit is non-refundable, meaning it cannot exceed the taxpayer's tax liability, and unused portions cannot be carried forward or back to other tax years. The bill also amends the definition of "recycled water" and "reclaimed water" to include rainwater and storm water, and requires the director of taxation to create necessary forms and rules for administering the credit, with claims needing to be filed by the end of the twelfth month following the close of the taxable year.