I 
113TH CONGRESS 
2D SESSION 
H. R. 4114 
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 
FEBRUARY 27, 2014 
Mr. MCNERNEY (for himself and Mr. GARAMENDI) 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 Pro-
tection Agency under the WaterSense program. 
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 ‘‘Water Efficiency Im-
provement Act of 2014’’. 
SEC. 2. CREDIT FOR WATERSENSE PROGRAM PROPERTY. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 30E. WATERSENSE PROGRAM PROPERTY. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed 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 tax-
able 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 ex-
cess (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
PROP-
ERTY.—For purposes of this section, the term ‘certified 
WaterSense program property’ means any plumbing fix-
ture or plumbing fixture fitting— 
‘‘(1) which has been— 
‘‘(A) tested by an American National 
Standards Institute accredited third-party certi-
fying body or laboratory in accordance with the 
Environmental Protection Agency’s WaterSense 
program (or an analogous successor program), 
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‘‘(B) certified by such body or laboratory 
as meeting the performance and efficiency re-
quirements 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 sub-
section) that is attributable to property of a char-
acter 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 para-
graph (1)) shall be treated as a credit allowable 
under subpart A for such taxable year. 
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) AGGREGATION RULES.—All persons treat-
ed as a single employer under subsection (a) or (b) 
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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 
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inserting ‘‘, and’’, and by adding at the end the fol-
lowing 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. 
Æ 
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