I 

111TH CONGRESS 

1ST SESSION H. R. 1908 

To amend the Internal Revenue Code of 1986 to provide a credit for property 

certified by the Environmental Protection Agency under the WaterSense 

program. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 2, 2009 

Mr. COFFMAN of Colorado (for himself, Mr. KIND, Mr. BISHOP of Utah, Mr. 

LAMBORN, and Ms. MARKEY of Colorado) 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 provide 

a credit for property certified by the Environmental Protection Agency under the WaterSense program. 

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 Accountability 

5 Tax Efficiency Reinvestment Act of 2009’’ or as the 

6 ‘‘WATER Act of 2009’’. 

7 SEC. 2. CREDIT FOR WATERSENSE PROGRAM PROPERTY. 

8 (a) IN GENERAL.—Subpart B of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 30E. WATERSENSE PROGRAM PROPERTY. 

4 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al5 lowed as a credit against the tax imposed by this chapter 

6 for the taxable year an amount equal to 30 percent of the 

7 amounts paid or incurred by the taxpayer during such tax8 able year for certified WaterSense program property. 

9 ‘‘(b) LIFETIME LIMITATION.—The aggregate amount 

10 of the credits allowed under this section with respect to 

11 any taxpayer for any taxable year shall not exceed the ex12 cess (if any) of $1,500 over the aggregate credits allowed 

13 under this section with respect to such taxpayer for all 

14 prior taxable years. 

15 ‘‘(c) CERTIFIED WATERSENSE PROGRAM PROP16 ERTY.—For purposes of this section, the term ‘certified 

17 WaterSense program property’ means any property— 

18 ‘‘(1) certified by the Environmental Protection 

19 Agency as meeting the requirements of the 

20 WaterSense program, and 

21 ‘‘(2) the original use of which commences with 

22 the taxpayer. 

23 ‘‘(d) APPLICATION WITH OTHER CREDITS.— 

24 ‘‘(1) BUSINESS CREDIT TREATED AS PART OF

25 GENERAL BUSINESS CREDIT.—So much of the credit 


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1 which would be allowed under subsection (a) for any 

2 taxable year (determined without regard to this sub3 section) that is attributable to property of a char4 acter subject to an allowance for depreciation shall 

5 be treated as a credit listed in section 38(b) for such 

6 taxable year (and not allowed under subsection (a)). 

7 ‘‘(2) PERSONAL CREDIT.— 

8 ‘‘(A) IN GENERAL.—For purposes of this 

9 title, the credit allowed under subsection (a) for 

10 any taxable year (determined after application 

11 of paragraph (1)) shall be treated as a credit 

12 allowable under subpart A for such taxable 

13 year. 

14 ‘‘(B) LIMITATION BASED ON AMOUNT OF

15 TAX.—In the case of a taxable year to which 

16 section 26(a)(2) does not apply, the credit al17 lowed under subsection (a) for any taxable year 

18 (determined after application of paragraph (1)) 

19 shall not exceed the excess of— 

20 ‘‘(i) the sum of the regular tax liabil21 ity (as defined in section 26(b)) plus the 

22 tax imposed by section 55, over 

23 ‘‘(ii) the sum of the credits allowable 

24 under subpart A (other than this section 


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1 and sections 23, 25D, 30, and 30D) and 

2 section 27 for the taxable year. 

3 ‘‘(e) SPECIAL RULES.—For purposes of this sec4 tion— 

5 ‘‘(1) AGGREGATION RULES.—All persons treat6 ed as a single employer under subsection (a) or (b) 

7 of section 52, or subsection (m) or (o) of section 

8 414, shall be treated as a one person. 

9 ‘‘(2) BASIS REDUCTION.—For purposes of this 

10 subtitle, the basis of any property for which a credit 

11 is allowable under subsection (a) shall be reduced by 

12 the amount of such credit so allowed (determined 

13 without regard to subsection (d)). 

14 ‘‘(3) NO DOUBLE BENEFIT.—The amount of 

15 any deduction or other credit allowable under this 

16 chapter with respect to any property for which credit 

17 is allowable under subsection (a) shall be reduced by 

18 the amount of credit allowed under subsection (a) 

19 with respect to such property (determined without 

20 regard to subsection (d)). 

21 ‘‘(4) PROPERTY USED OUTSIDE UNITED STATES

22 NOT QUALIFIED.—No credit shall be allowable under 

23 subsection (a) with respect to any property referred 

24 to in section 50(b)(1). 


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1 ‘‘(f) TERMINATION.—This section shall not apply to 

2 any property placed in service after December 31, 2010.’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1)(A) Section 24(b)(3)(B) of such Code is 

5 amended by striking ‘‘and 30D’’ and inserting 

6 ‘‘30D, and 30E’’. 

7 (B) Section 25(e)(1)(C)(ii) of such Code is 

8 amended by inserting ‘‘30E,’’ after ‘‘30D,’’. 

9 (C) Section 25B(g)(2) of such Code is amended 

10 by striking ‘‘and 30D’’ and inserting ‘‘30D, and 

11 30E’’. 

12 (D) Section 26(a)(1) of such Code is amended 

13 by striking ‘‘and 30D’’ and inserting ‘‘30D, and 

14 30E’’. 

15 (E) Section 904(i) of such Code is amended by 

16 striking ‘‘and 30D’’ and inserting ‘‘30D, and 30E’’. 

17 (F) Section 1400C(d)(2) of such Code is 

18 amended by striking ‘‘and 30D’’ and inserting 

19 ‘‘30D, and 30E’’. 

20 (2) Section 1016(a) of such Code is amended 

21 by striking ‘‘and’’ at the end of paragraph (36), by 

22 striking the period at the end of paragraph (37) and 

23 inserting ‘‘, and’’, and by adding at the end the fol24 lowing new paragraph: 


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1 ‘‘(37) to the extend provided in section 

2 30E(e)(2).’’. 

3 (3) The table of sections for subpart B of part 

4 IV of subchapter A of chapter 1 of such Code is 

5 amended by adding at the end the following new 

6 item: 

‘‘Sec. 30E. WaterSense program property.’’. 

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

8 this section shall apply to property placed in service after 

9 the date of the enactment of this Act. 

Æ 


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