HR2940119th CongressWALLET

Advancing Water Reuse Act

Sponsored By: Representative LaHood

Introduced

Summary

A 30% investment tax credit for qualifying water reuse projects would encourage businesses and cities to invest in equipment and systems that recycle water for industrial use. The proposal targets onsite recycling at factories, data centers, and food processors and supports municipal recycling projects that supply recycled water for production.

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  • Businesses: Industrial, manufacturing, data centers, and food processors would be eligible for a 30% credit on the cost of qualifying water-reuse equipment they place in service. Construction of credited projects must begin before Jan 1, 2033.
  • Municipal systems: Cities and municipal water providers that build or expand recycling infrastructure to secure recycled water for production would qualify for the investment credit.
  • Transfers to utilities: If a company transfers qualifying project property to a utility under a written agreement, the company can still claim the credit and is treated as having placed the property in service at transfer. The transferor’s basis is used for the credit and the utility may not claim the same property again.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

New 30% credit for business water reuse

This bill would create a 30% investment tax credit for qualifying water reuse projects. Businesses and investors would be able to claim 30% of the basis of qualified property placed in service during the year. Property would need to be tangible, depreciable, and either built by the taxpayer or first used by them. Qualifying projects would include onsite recycling at industrial, manufacturing, data center, or food processing sites; switching from freshwater to recycled municipal water; or building or expanding municipal recycling systems to secure recycled water for making goods or providing services. A special rule would let a project sponsor keep the credit when transferring qualified property to a utility if there is a binding written agreement; the utility could not also claim it. Rules like prior investment credits would allow counting some progress spending during construction. The credit would apply after enactment, and projects must begin construction by December 31, 2032.

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Sponsors & CoSponsors

Sponsor

LaHood

IL • R

Cosponsors

  • Rep. Sánchez, Linda T. [D-CA-38]

    CA • D

    Sponsored 4/17/2025

  • Tenney

    NY • R

    Sponsored 4/17/2025

  • Rep. Schneider, Bradley Scott [D-IL-10]

    IL • D

    Sponsored 4/17/2025

  • Rep. Fitzpatrick, Brian K. [R-PA-1]

    PA • R

    Sponsored 5/5/2025

  • Rep. Scholten, Hillary J. [D-MI-3]

    MI • D

    Sponsored 5/19/2025

  • Rep. Castor, Kathy [D-FL-14]

    FL • D

    Sponsored 7/16/2025

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 9/9/2025

  • Rep. Casten, Sean [D-IL-6]

    IL • D

    Sponsored 10/3/2025

  • McBride

    DE • D

    Sponsored 10/17/2025

  • Rep. Costa, Jim [D-CA-21]

    CA • D

    Sponsored 10/24/2025

  • Morrison

    MN • D

    Sponsored 10/24/2025

  • Wittman

    VA • R

    Sponsored 10/24/2025

  • Rep. Harrigan, Pat [R-NC-10]

    NC • R

    Sponsored 10/31/2025

  • Lee (NV)

    NV • D

    Sponsored 10/31/2025

  • Rep. Min, Dave [D-CA-47]

    CA • D

    Sponsored 11/4/2025

  • Rep. Courtney, Joe [D-CT-2]

    CT • D

    Sponsored 11/19/2025

  • Rep. Mackenzie, Ryan [R-PA-7]

    PA • R

    Sponsored 12/1/2025

  • Rep. Tran, Derek [D-CA-45]

    CA • D

    Sponsored 12/2/2025

  • Rep. Levin, Mike [D-CA-49]

    CA • D

    Sponsored 12/18/2025

  • Rep. Davids, Sharice [D-KS-3]

    KS • D

    Sponsored 1/7/2026

  • Rep. Carey, Mike [R-OH-15]

    OH • R

    Sponsored 1/16/2026

  • Rep. Krishnamoorthi, Raja [D-IL-8]

    IL • D

    Sponsored 2/3/2026

  • Rep. Vasquez, Gabe [D-NM-2]

    NM • D

    Sponsored 2/3/2026

  • Rep. Cohen, Steve [D-TN-9]

    TN • D

    Sponsored 3/24/2026

Roll Call Votes

No roll call votes available for this bill.

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