I 
111TH CONGRESS 
1ST SESSION H. R. 1908 
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 
APRIL 2, 2009 
Mr. COFFMAN of Colorado (for himself, Mr. KIND, Mr. BISHOP of Utah, Mr. 
LAMBORN, and Ms. MARKEY of Colorado) 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 Accountability 
Tax Efficiency Reinvestment Act of 2009’’ or as the 
‘‘WATER Act of 2009’’. 
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 $1,500 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 property— 
‘‘(1) certified by the Environmental Protection 
Agency as meeting the requirements of the 
WaterSense program, 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 
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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.— 
‘‘(A) IN GENERAL.—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. 
‘‘(B) LIMITATION BASED ON AMOUNT OF 
TAX.—In the case of a taxable year to which 
section 26(a)(2) does not apply, the credit al-
lowed under subsection (a) for any taxable year 
(determined after application of paragraph (1)) 
shall not exceed the excess of— 
‘‘(i) the sum of the regular tax liabil-
ity (as defined in section 26(b)) plus the 
tax imposed by section 55, over 
‘‘(ii) the sum of the credits allowable 
under subpart A (other than this section 
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and sections 23, 25D, 30, and 30D) and 
section 27 for the 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) 
of section 52, or subsection (m) or (o) of section 
414, shall be treated as a 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). 
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‘‘(f) TERMINATION.—This section shall not apply to 
any property placed in service after December 31, 2010.’’. 
(b) CONFORMING AMENDMENTS.— 
(1)(A) Section 24(b)(3)(B) of such Code is 
amended by striking ‘‘and 30D’’ and inserting 
‘‘30D, and 30E’’. 
(B) Section 25(e)(1)(C)(ii) of such Code is 
amended by inserting ‘‘30E,’’ after ‘‘30D,’’. 
(C) Section 25B(g)(2) of such Code is amended 
by striking ‘‘and 30D’’ and inserting ‘‘30D, and 
30E’’. 
(D) Section 26(a)(1) of such Code is amended 
by striking ‘‘and 30D’’ and inserting ‘‘30D, and 
30E’’. 
(E) Section 904(i) of such Code is amended by 
striking ‘‘and 30D’’ and inserting ‘‘30D, and 30E’’. 
(F) Section 1400C(d)(2) of such Code is 
amended by striking ‘‘and 30D’’ and inserting 
‘‘30D, and 30E’’. 
(2) 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 fol-
lowing new paragraph: 
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‘‘(37) to the extend provided in section 
30E(e)(2).’’. 
(3) 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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