II 

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. 

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 Efficiency Im5 provement Act of 2014’’. 

6 SEC. 2. CREDIT FOR WATERSENSE PROGRAM PROPERTY. 

7 (a) IN GENERAL.—Subpart B of part IV of sub8 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 $2,000 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 plumbing fix18 ture or plumbing fixture fitting— 

19 ‘‘(1) which has been— 

20 ‘‘(A) tested by an American National 

21 Standards Institute accredited third-party certi22 fying body or laboratory in accordance with the 

23 Environmental Protection Agency’s WaterSense 

24 program (or an analogous successor program), 


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1 ‘‘(B) certified by such body or laboratory 

2 as meeting the performance and efficiency re3 quirements of such program, and 

4 ‘‘(C) authorized by such program to use its 

5 label, and 

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

7 the taxpayer. 

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

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

10 GENERAL BUSINESS CREDIT.—So much of the credit 

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

12 taxable year (determined without regard to this sub13 section) that is attributable to property of a char14 acter subject to an allowance for depreciation shall 

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

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

17 ‘‘(2) PERSONAL CREDIT.—For purposes of this 

18 title, the credit allowed under subsection (a) for any 

19 taxable year (determined after application of para20 graph (1)) shall be treated as a credit allowable 

21 under subpart A for such taxable year. 

22 ‘‘(e) SPECIAL RULES.—For purposes of this sec23 tion— 

24 ‘‘(1) AGGREGATION RULES.—All persons treat25 ed as a single employer under subsection (a) or (b) 


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

2 414, shall be treated as one person. 

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

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

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

6 the amount of such credit so allowed (determined 

7 without regard to subsection (d)). 

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

9 any deduction or other credit allowable under this 

10 chapter with respect to any property for which credit 

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

12 the amount of credit allowed under subsection (a) 

13 with respect to such property (determined without 

14 regard to subsection (d)). 

15 ‘‘(4) PROPERTY USED OUTSIDE UNITED STATES

16 NOT QUALIFIED.—No credit shall be allowable under 

17 subsection (a) with respect to any property referred 

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

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

20 any property placed in service after December 31, 2015.’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Section 1016(a) of such Code is amended 

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

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


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1 inserting ‘‘, and’’, and by adding at the end the fol2 lowing new paragraph: 

3 ‘‘(38) to the extent provided in section 

4 30E(e)(2).’’. 

5 (2) The table of sections for subpart B of part 

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

7 amended by adding at the end the following new 

8 item: 

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

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

10 this section shall apply to property placed in service after 

11 the date of the enactment of this Act. 

Æ 


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