Bill > HR1871

This bill amends the Internal Revenue Code to expand tax exemptions for subsidies related to water conservation, stormwater management, and wastewater management. Specifically, the bill allows taxpayers to exclude from their taxable income rebates or subsidies received from public utilities, state or local governments, or stormwater management providers for purchasing or installing water-related infrastructure improvements. These improvements include measures that reduce water consumption, manage stormwater runoff, or improve wastewater systems, but only when they are applied to a taxpayer's primary residence. The bill defines key terms such as "water conservation or efficiency measure" (which includes evaluations and installations aimed at reducing water use), "stormwater management measure" (installations designed to reduce flooding), and "wastewater management measure" (installations like septic tanks designed to manage wastewater). The tax exclusion applies to subsidies received after December 31, 2021, and the bill explicitly states that it does not create any retroactive implications for tax treatment of similar subsidies received before that date. This legislation aims to encourage water conservation and infrastructure improvements by removing potential tax barriers to receiving such subsidies.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1871/all-info