Bill > S857

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 income tax exclusions for subsidies provided by public utilities, state or local governments, or stormwater management providers for the purchase or installation of water-related infrastructure improvements at a taxpayer's principal residence. The bill defines "water conservation or efficiency measure" as any evaluation or property modification primarily aimed at reducing water consumption, "stormwater management measure" as installations designed to reduce or manage stormwater and prevent flooding, and "wastewater management measure" as property modifications designed to manage wastewater like septic tanks. The tax exclusion applies to subsidies received after December 31, 2021, and the bill explicitly states that it does not create any retroactive implications about the tax treatment of such subsidies before that date. This legislation aims to provide tax incentives for homeowners to invest in water-related infrastructure and conservation efforts by making related subsidies tax-free.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/857/all-info