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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2227 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2227

  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 SENATE OF THE UNITED STATES

                             April 9, 2014

 Mr. Udall of New Mexico introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Efficiency Improvement Act of 
2014''.

SEC. 2. CREDIT FOR WATERSENSE PROGRAM PROPERTY.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30E. WATERSENSE PROGRAM PROPERTY.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 30 percent of the amounts paid or incurred by the taxpayer 
during such taxable year for certified WaterSense program property.
    ``(b) Lifetime Limitation.--The aggregate amount of the credits 
allowed under this section with respect to any taxpayer for any taxable 
year shall not exceed the excess (if any) of $2,000 over the aggregate 
credits allowed under this section with respect to such taxpayer for 
all prior taxable years.
    ``(c) Certified WaterSense Program Property.--For purposes of this 
section, the term `certified WaterSense program property' means any 
plumbing fixture or plumbing fixture fitting--
            ``(1) which has been--
                    ``(A) tested by an American National Standards 
                Institute accredited third-party certifying body or 
                laboratory in accordance with the Environmental 
                Protection Agency's WaterSense program (or an analogous 
                successor program),
                    ``(B) certified by such body or laboratory as 
                meeting the performance and efficiency requirements of 
                such program, and
                    ``(C) authorized by such program to use its label, 
                and
            ``(2) the original use of which commences with the 
        taxpayer.
    ``(d) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--For purposes of this title, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall be 
        treated as a credit allowable under subpart A for such taxable 
        year.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Aggregation rules.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52, or 
        subsection (m) or (o) of section 414, shall be treated as one 
        person.
            ``(2) Basis reduction.--For purposes of this subtitle, the 
        basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed (determined without regard to subsection (d)).
            ``(3) No double benefit.--The amount of any deduction or 
        other credit allowable under this chapter with respect to any 
        property for which credit is allowable under subsection (a) 
        shall be reduced by the amount of credit allowed under 
        subsection (a) with respect to such property (determined 
        without regard to subsection (d)).
            ``(4) Property used outside united states not qualified.--
        No credit shall be allowable under subsection (a) with respect 
        to any property referred to in section 50(b)(1).
    ``(f) Termination.--This section shall not apply to any property 
placed in service after December 31, 2015.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(38) to the extent provided in section 30E(e)(2).''.
            (2) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 30E. WaterSense program property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
                                 <all>
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