Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1871 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 1871
5	5	To amend the Internal Revenue Code of 1986 to expand the exclusion for
6	6	certain conservation subsidies to include subsidies for water conservation
7	7	or efficiency measures, storm water management measures, and waste-
8	8	water management measures.
9	9	IN THE HOUSE OF REPRESENTATIVES
10	10	MARCH5, 2025
11	11	Mr. H
12	12	UFFMAN(for himself, Mr. MOOREof Utah, and Ms. CHU) introduced
13	13	the following bill; which was referred to the Committee on Ways and Means
14	14	A BILL
15	15	To amend the Internal Revenue Code of 1986 to expand
16	16	the exclusion for certain conservation subsidies to include
17	17	subsidies for water conservation or efficiency measures,
18	18	storm water management measures, and wastewater
19	19	management measures.
20	20	Be it enacted by the Senate and House of Representa-1
21	21	tives of the United States of America in Congress assembled, 2
22	22	SECTION 1. SHORT TITLE. 3
23	23	This Act may be cited as the ‘‘Water Conservation 4
24	24	Rebate Tax Parity Act’’. 5
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27	27	•HR 1871 IH
28	28	SEC. 2. MODIFICATIONS TO INCOME EXCLUSION FOR CON-1
29	29	SERVATION SUBSIDIES. 2
30	30	(a) I
31	31	NGENERAL.—Subsection (a) of section 136 of 3
32	32	the Internal Revenue Code of 1986 is amended— 4
33	33	(1) by striking ‘‘any subsidy provided’’ and in-5
34	34	serting ‘‘any subsidy— 6
35	35	‘‘(1) provided’’, 7
36	36	(2) by striking the period at the end and insert-8
37	37	ing a comma, and 9
38	38	(3) by adding at the end the following new 10
39	39	paragraphs: 11
40	40	‘‘(2) provided (directly or indirectly) by a public 12
41	41	utility to a customer, or by a State or local govern-13
42	42	ment to a resident of such State or locality, for the 14
43	43	purchase or installation of any water conservation or 15
44	44	efficiency measure, 16
45	45	‘‘(3) provided (directly or indirectly) by a storm 17
46	46	water management provider to a customer, or by a 18
47	47	State or local government to a resident of such State 19
48	48	or locality, for the purchase or installation of any 20
49	49	storm water management measure, or 21
50	50	‘‘(4) provided (directly or indirectly) by a State 22
51	51	or local government to a resident of such State or 23
52	52	locality for the purchase or installation of any waste-24
53	53	water management measure, but only if such meas-25
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56	56	•HR 1871 IH
57	57	ure is with respect to the taxpayer’s principal resi-1
58	58	dence.’’. 2
59	59	(b) C
60	60	ONFORMINGAMENDMENTS.— 3
61	61	(1) D
62	62	EFINITION OF WATER CONSERVATION OR 4
63	63	EFFICIENCY MEASURE AND STORM WATER MANAGE -5
64	64	MENT MEASURE .—Section 136(c) of the Internal 6
65	65	Revenue Code of 1986 is amended— 7
66	66	(A) by striking ‘‘E
67	67	NERGYCONSERVATION 8
68	68	M
69	69	EASURE’’ in the heading thereof and inserting 9
70	70	‘‘D
71	71	EFINITIONS’’, 10
72	72	(B) by striking ‘‘I
73	73	N GENERAL’’ in the 11
74	74	heading of paragraph (1) and inserting ‘‘E
75	75	N-12
76	76	ERGY CONSERVATION MEASURE ’’, and 13
77	77	(C) by redesignating paragraph (2) as 14
78	78	paragraph (5) and by inserting after paragraph 15
79	79	(1) the following: 16
80	80	‘‘(2) W
81	81	ATER CONSERVATION OR EFFICIENCY 17
82	82	MEASURE.—For purposes of this section, the term 18
83	83	‘water conservation or efficiency measure’ means any 19
84	84	evaluation of water use, or any installation or modi-20
85	85	fication of property, the primary purpose of which is 21
86	86	to reduce consumption of water or to improve the 22
87	87	management of water demand with respect to one or 23
88	88	more dwelling units. 24
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91	91	•HR 1871 IH
92	92	‘‘(3) STORM WATER MANAGEMENT MEASURE .— 1
93	93	For purposes of this section, the term ‘storm water 2
94	94	management measure’ means any installation or 3
95	95	modification of property primarily designed to re-4
96	96	duce or manage amounts of storm water with re-5
97	97	spect to one or more dwelling units, including an in-6
98	98	stallation or modification to prevent or reduce the 7
99	99	impacts of storm water-caused flooding to such 8
100	100	property. 9
101	101	‘‘(4) W
102	102	ASTEWATER MANAGEMENT MEASURE .— 10
103	103	For purposes of this section, the term ‘wastewater 11
104	104	management measure’ means any installation or 12
105	105	modification of property primarily designed to man-13
106	106	age wastewater (including septic tanks and cess-14
107	107	pools) with respect to one or more dwelling units.’’. 15
108	108	(2) D
109	109	EFINITION OF PUBLIC UTILITY .—Section 16
110	110	136(c)(5) of such Code (as redesignated by para-17
111	111	graph (1)(C)) is amended by striking subparagraph 18
112	112	(B) and inserting the following: 19
113	113	‘‘(B) P
114	114	UBLIC UTILITY.—The term ‘public 20
115	115	utility’ means a person engaged in the sale of 21
116	116	electricity, natural gas, or water to residential, 22
117	117	commercial, or industrial customers for use by 23
118	118	such customers. 24
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121	121	•HR 1871 IH
122	122	‘‘(C) STORM WATER MANAGEMENT PRO -1
123	123	VIDER.—The term ‘storm water management 2
124	124	provider’ means a person engaged in the provi-3
125	125	sion of storm water management measures to 4
126	126	the public. 5
127	127	‘‘(D) P
128	128	ERSON.—For purposes of subpara-6
129	129	graphs (B) and (C), the term ‘person’ includes 7
130	130	the Federal Government, a State or local gov-8
131	131	ernment or any political subdivision thereof, or 9
132	132	any instrumentality of any of the foregoing.’’. 10
133	133	(3) C
134	134	LERICAL AMENDMENTS .— 11
135	135	(A) The heading of section 136 of such 12
136	136	Code is amended— 13
137	137	(i) by inserting ‘‘
138	138	AND WATER ’’ after 14
139	139	‘‘
140	140	ENERGY’’, and 15
141	141	(ii) by striking ‘‘
142	142	PROVIDED BY PUB -16
143	143	LIC UTILITIES’’. 17
144	144	(B) The item relating to section 136 in the 18
145	145	table of sections of part III of subchapter B of 19
146	146	chapter 1 of such Code is amended— 20
147	147	(i) by inserting ‘‘and water’’ after 21
148	148	‘‘energy’’, and 22
149	149	(ii) by striking ‘‘provided by public 23
150	150	utilities’’. 24
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153	153	•HR 1871 IH
154	154	(c) EFFECTIVEDATE.—The amendments made by 1
155	155	this section shall apply to amounts received after Decem-2
156	156	ber 31, 2021. 3
157	157	(d) N
158	158	OINFERENCE.—Nothing in this Act or the 4
159	159	amendments made by this Act shall be construed to create 5
160	160	any inference with respect to the proper tax treatment of 6
161	161	any subsidy received directly or indirectly from a public 7
162	162	utility, a storm water management provider, or a State 8
163	163	or local government for any water conservation or effi-9
164	164	ciency measure, storm water management measure, or 10
165	165	wastewaster management measure before January 1, 11
166	166	2022. 12
167	167	Æ
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