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.
Show full summary
- 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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