Water Conservation Rebate Tax Parity Act

To amend the Internal Revenue Code of 1986 to expand the exclusion for certain conservation subsidies to include subsidies for water conservation or efficiency measures and storm water management measures. 1. Short title This Act may be cited as the Water Conservation Rebate Tax Parity Act 2. Modifications to income exclusion for conservation subsidies (a) In general Section 136(a) (1) by striking any subsidy provided any subsidy— (1) provided , (2) by striking the period at the end and inserting a comma, and (3) by adding at the end the following new paragraphs: (2) provided (directly or indirectly) by a public utility to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any water conservation or efficiency measure, (3) provided (directly or indirectly) by a storm water management provider to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any storm water management measure, or (4) provided (directly or indirectly) by a State or local government to a resident of such State or locality for the purchase or installation of any wastewater management measure, but only if such measure is with respect to the taxpayer’s principal residence. . (b) Conforming amendments (1) Definition of water conservation or efficiency measure and storm water management measure Section 136(c) (A) by striking Energy conservation measure Definitions (B) by striking In general Energy conservation measure (C) by redesignating paragraph (2) as paragraph (5) and by inserting after paragraph (1) the following: (2) Water conservation or efficiency measure For purposes of this section, the term water conservation or efficiency measure (3) Storm water management measure For purposes of this section, the term storm water management measure (4) Wastewater management measure For purposes of this section, the term wastewater management measure . (2) Definition of public utility Section 136(c)(5) of such Code (as redesignated by paragraph (1)(C)) is amended by striking subparagraph (B) and inserting the following: (B) Public utility The term public utility (C) Storm water management provider The term storm water management provider (D) Person For purposes of subparagraphs (B) and (C), the term person . (3) Clerical amendments (A) The heading of section 136 of such Code is amended— (i) by inserting and water energy (ii) by striking provided by public utilities (B) The item relating to section 136 in the table of sections of part III of subchapter B of chapter 1 of such Code is amended— (i) by inserting and water energy (ii) by striking provided by public utilities (c) Effective date The amendments made by this section shall apply to amounts received after December 31, 2018. (d) No inference Nothing in this Act or the amendments made by this Act shall be construed to create any inference with respect to the proper tax treatment of any subsidy received directly or indirectly from a public utility, a storm water management provider, or a State or local government for any water conservation measure or storm water management measure before January 1, 2022.

Summary: Water Conservation Rebate Tax Parity Act This bill expands the tax exclusions for energy conservation subsidies to include subsidies provided (directly or indirectly) (1) by a public utility for the purchase or installation of any water conservation or efficiency measure; (2) by a storm water management provider for the purchase or installation of any storm water management measure; or (3) by a state or local government to a resident of such state or locality for the purchase or installation of any wastewater management measure, but only if such measure concerns the taxpayer's principal residence.