(2) The world water crisis is one of the largest 
public health issues of our time. Nearly 1.1 billion 
people (roughly 20 percent of the world’s popu-
lation) lack access to safe drinking water. 
(3) Americans use more water per day per per-
son—nearly 1,300 gallons—than anyone else in the 
world. 
(4) Maximizing water efficiency efforts across 
the United States is a faster and cheaper approach 
than investing billions of dollars in water supply 
projects that will take years to build and come at a 
great cost to the environment and economy. 
SEC. 3. CREDIT FOR HOME WATER CONSERVATION. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by inserting after section 25D the following new 
section: 
‘‘SEC. 25E. HOME WATER CONSERVATION. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter the amount of— 
‘‘(1) $150 for the first home water conservation 
year beginning after the date of the enactment of 
this section, and 
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‘‘(2) $150 for the first taxable year thereafter 
if the requirements of subsection (b) would be met 
if ‘second preceding calendar year’ were substituted 
for ‘preceding calendar year’ in paragraph (1) there-
of. 
‘‘(b) WATER CONSERVATION YEAR.—For purposes of 
this section, the term ‘water conservation year’ means any 
taxable year if— 
‘‘(1) according to the metered water usage at 
the principal place of abode of the taxpayer, the 
amount of water consumed at such abode during the 
calendar year ending with or within such taxable 
year is not more than 60 percent of the water con-
sumed at such abode during the preceding calendar 
year, and 
‘‘(2) it is established to the satisfaction of the 
Secretary that such water reduction is the result of 
water conservation efforts of the taxpayer and not 
the result of the weather, changes in the number or 
ages of individuals occupying the residence, govern-
mental restrictions on water use, or other factors 
specified by the Secretary. 
‘‘(c) OTHER CONDITIONS.—This section shall apply 
only if— 
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‘‘(1) the taxpayer has the same principal place 
of abode throughout each of the calendar years in-
volved in determining the credit under paragraph (1) 
or (2) of subsection (a), as the case may be, 
‘‘(2) such place of abode is located in the 
United States, 
‘‘(3) water is provided to such place of abode by 
a utility or governmental entity and is metered by 
such utility or entity for billing purposes, and 
‘‘(4) the bill for water use at such place of 
abode is billed directly to the taxpayer by such util-
ity or entity.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for such subpart A is amended by inserting after the item 
relating to section 25D the following new item: 
‘‘Sec. 25E. Home water conservation.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to reductions in water usage in 
calendar years ending with or within taxable years begin-
ning after the date of the enactment of this Act. 
Æ 
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