HR1871119th CongressWALLET

Water Conservation Rebate Tax Parity Act

Sponsored By: Representative Huffman, Jared [D-CA-2]

Introduced

Summary

Makes rebates and other subsidies for water conservation measures tax-free for recipients. It would expand the tax exclusion that now covers energy conservation subsidies to include water conservation and efficiency, storm water management, and certain wastewater measures and add formal definitions for key terms.

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  • Families and homeowners: Rebates or subsidies from utilities or state or local governments for installing water-saving devices or storm water measures would be excluded from income. Wastewater subsidies are excluded only when tied to a taxpayer's principal residence.
  • Utilities and providers: Public utilities and storm water management providers could provide subsidies to customers that qualify for the exclusion. The bill defines "public utility" to include sellers of water, electricity, or gas and defines storm water management providers.
  • Governments and timing: State and local grants count as excluded subsidies and the term "person" is expanded to include federal, state, and local governments or their instrumentalities. The change applies to amounts received after December 31, 2021.

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Bill Overview

Analyzed Economic Effects

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

Tax break for water-saving rebates

If enacted, rebates you get for water-saving, stormwater, or wastewater home work would not count as taxable income. This would cover rebates from public utilities, stormwater providers, or your state or local government. For wastewater work, the rebate would need to be for your main home. The bill defines what counts as water, stormwater, and wastewater measures. It would apply to amounts received after December 31, 2021.

Sponsors & CoSponsors

Sponsor

Huffman, Jared [D-CA-2]

CA • D

Cosponsors

  • Rep. Moore, Blake D. [R-UT-1]

    UT • R

    Sponsored 3/5/2025

  • Rep. Chu, Judy [D-CA-28]

    CA • D

    Sponsored 3/5/2025

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

    PA • R

    Sponsored 3/11/2025

  • Costa

    CA • D

    Sponsored 3/26/2025

  • Rep. Nunn, Zachary [R-IA-3]

    IA • R

    Sponsored 4/29/2025

  • Rep. Ruiz, Raul [D-CA-25]

    CA • D

    Sponsored 4/29/2025

  • Levin

    CA • D

    Sponsored 6/4/2025

  • Friedman

    CA • D

    Sponsored 6/23/2025

  • Rep. Torres, Norma J. [D-CA-35]

    CA • D

    Sponsored 9/9/2025

  • Rep. Brownley, Julia [D-CA-26]

    CA • D

    Sponsored 2/2/2026

  • Rep. Min, Dave [D-CA-47]

    CA • D

    Sponsored 3/3/2026

  • Cisneros

    CA • D

    Sponsored 4/21/2026

Roll Call Votes

No roll call votes available for this bill.

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