I 
117TH CONGRESS 
2D SESSION 
H. R. 9194 
To amend the Internal Revenue Code of 1986 to impose an excise tax 
on water use during droughts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 18, 2022 
Mr. GALLEGO (for himself and Mr. GRIJALVA) 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 impose 
an excise tax on water use during droughts, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Domestic Water Pro-
tection Act of 2022’’. 
SEC. 2. EXCISE TAX ON GROWTH OF CERTAIN WATER-IN-
TENSIVE CROPS. 
(a) IN GENERAL.—Subchapter D of chapter 32 of the 
Internal Revenue Code of 1986 is amended by inserting 
after part I the following new part: 
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‘‘PART II—WATER-INTENSIVE CROPS 
‘‘Sec. 4171. Imposition of tax. 
‘‘Sec. 4172. Definitions. 
‘‘Sec. 4173. Special rules. 
‘‘SEC. 4171. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on the sale of any specified water intensive crop by the 
manufacturer, producer, or importer thereof a tax of 300 
percent of the price for which so sold. 
‘‘(b) PERSONS LIABLE
FOR TAX.—The manufac-
turer, producer, or importer referred to in subsection (a) 
shall be liable for the tax imposed by such subsection. 
‘‘(c) REGULATIONS.—The Secretary shall promulgate 
regulations for application of this section in a manner con-
sistent with international trade agreements. 
‘‘SEC. 4172. DEFINITIONS. 
‘‘(a) WATER-INTENSIVE CROP.—For purposes of this 
part— 
‘‘(1) IN GENERAL.—The term ‘water-intensive 
crop’ means a crop grown— 
‘‘(A) in an area experiencing prolonged 
drought at the time such crop is grown, and 
‘‘(B) by a manufacturer, producer, or im-
porter which is a foreign corporation or foreign 
government. 
‘‘(b) 
AREA
EXPERIENCING
PROLONGED 
DROUGHT.—The term ‘area experiencing prolonged 
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drought’ means an area which has been identified by the 
United States Drought Monitor as experiencing severe, ex-
treme, or exceptional drought lasting more than 6 months. 
‘‘SEC. 4173. SPECIAL RULES. 
‘‘In the case of any water-intensive crop which is 
manufactured or produced by including one or more other 
water-intensive crops, no tax shall be imposed under this 
section on any water-intensive crop contained in the re-
sulting specified water-intensive crop if tax was previously 
imposed under this section on such water-intensive crop 
when contained in the water-intensive crop so included.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 4221(a) is amended by adding at 
the end the following: ‘‘Paragraphs (1), (4), (5), and 
(6) shall not apply to the tax imposed under section 
4171.’’. 
(2) The table of parts for subchapter D of 
chapter 32 of such Code is amended by inserting 
after the item relating to part I the following new 
item: 
‘‘Part II. Water-intensive crops.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales after the date of the enact-
ment of this Act. 
Æ 
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