I 

114TH CONGRESS 

2D SESSION H. R. 4615 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

amounts received from a water department for water conservation efficiency measures and water runoff management improvements. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 25, 2016 

Mr. HUFFMAN (for himself and Mr. ROHRABACHER) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

from gross income amounts received from a water department for water conservation efficiency measures and 

water runoff management improvements. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Water Conservation 

5 Rebate Tax Parity Act’’. 


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1 SEC. 2. EXCLUSION OF AMOUNTS RECEIVED FROM A 

2 WATER DEPARTMENT FOR WATER CON3 SERVATION EFFICIENCY MEASURES AND 

4 WATER RUNOFF MANAGEMENT IMPROVE5 MENTS. 

6 (a) IN GENERAL.—Part III of subchapter B of chap7 ter 1 of the Internal Revenue Code of 1986 is amended 

8 by inserting after section 139E the following new section: 

9 ‘‘SEC. 139F. WATER CONSERVATION EFFICIENCY MEAS10 URES AND WATER RUNOFF MANAGEMENT IM11 PROVEMENTS. 

12 ‘‘(a) IN GENERAL.—Gross income shall not include 

13 the value of any water conservation and efficiency measure 

14 or water runoff management improvement (or any sub15 sidy, rebate, or other amount for such a measure or im16 provement) received directly or indirectly from a water de17 partment. 

18 ‘‘(b) DENIAL OF DOUBLE BENEFIT.—Notwith19 standing any other provision of this subtitle, no deduction 

20 or credit shall be allowed for, or by reason of, any expendi21 ture to the extent of the amount excluded under sub22 section (a) for any subsidy, rebate or other amount which 

23 was provided with respect to such expenditure. The ad24 justed basis of any property shall be reduced by the 

25 amount excluded under subsection (a) which was provided 

26 with respect to such property. 


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1 ‘‘(c) DEFINITIONS.—For purposes of this section— 

2 ‘‘(1) WATER CONSERVATION AND EFFICIENCY

3 MEASURE.—The term ‘water conservation and effi4 ciency measure’ means any evaluation of water use, 

5 or any installation or modification of property, the 

6 primary purpose of which is to reduce consumption 

7 of water or to improve the management of water de8 mand with respect to one or more dwelling units. 

9 ‘‘(2) WATER RUNOFF MANAGEMENT IMPROVE10 MENT.—The term ‘water runoff management im11 provement’ means any installation or modification of 

12 property the primary purpose of which is to reduce 

13 or manage storm water runoff with respect to one or 

14 more dwelling units. 

15 ‘‘(3) WATER DEPARTMENT.—The term ‘water 

16 department’ means any entity (including a public or 

17 private utility, the Federal Government, a State or 

18 local government or any political subdivision thereof, 

19 or any instrumentality of the foregoing) engaged 

20 in— 

21 ‘‘(A) the provision of water to the public 

22 through pipes or other constructed conveyances, 

23 or 


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1 ‘‘(B) the collection, treatment, manage2 ment, or disposal of stormwater or wastewater 

3 generated by the public. 

4 ‘‘(4) DWELLING UNIT.—The term ‘dwelling 

5 unit’ has the meaning given such term by section 

6 280A(f)(1).’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

8 for part III of subchapter B of chapter 1 of such Code 

9 is amended by inserting after the item relating to section 

10 139E the following new item: 

‘‘Sec. 139F. Water conservation efficiency measures and water runoff management improvements.’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2014. 

14 (d) NO INFERENCE REGARDING PROPER TAX

15 TREATMENT.—Nothing in this Act or the amendments 

16 made by this Act shall be construed to create any infer17 ence with respect to the proper tax treatment of any sub18 sidy or rebate received directly or indirectly from a water 

19 department for any water conservation and efficiency 

20 measure or water runoff management improvement in any 

21 taxable year ending on or before the date of the enactment 

22 of this Act. 

Æ 


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