manage the disposal of older fixtures replaced due to the 
incentive program under this section. 
(f) ISSUANCE
OF REBATES.—Financial incentives 
may be provided to consumers that meet the requirements 
of the incentive program. The entity may issue all finan-
cial incentives directly to consumers or, with approval of 
the Administrator, delegate some or all financial incentive 
administration to other organizations including, but not 
limited to, local governments, municipal water authorities, 
and water utilities. The amount of a financial incentive 
shall be determined by the entity, taking into consider-
ation— 
(1) the amount of the allocation to the entity 
under subsection (c); 
(2) the amount of any Federal, State, or other 
organization’s tax or financial incentive available for 
the purchase of the residential water efficient prod-
uct or service; 
(3) the amount necessary to change consumer 
behavior to purchase water efficient products and 
services; and 
(4) the consumer expenditures for onsite prepa-
ration, assembly, and original installation of the 
product. 
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(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator to 
carry out this section $50,000,000 for fiscal year 2018, 
$100,000,000 for fiscal year 2019, $150,000,000 for fis-
cal year 2020, $100,000,000 for fiscal year 2021, and 
$50,000,000 for fiscal year 2022. 
SEC. 5. EARLY ADOPTER WATER EFFICIENT PRODUCTS IN-
CENTIVE PROGRAMS. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting before section 140 the following new section: 
‘‘SEC. 139F. EARLY ADOPTER WATER EFFICIENT PRODUCTS 
INCENTIVE PROGRAMS. 
‘‘(a) IN GENERAL.—In the case of an individual, 
gross income does not include any amount received under 
an incentive program under section 4 of the Water Ad-
vanced Technologies for Efficient Resource Use Act of 
2017. 
‘‘(b) DENIAL
OF
DOUBLE
BENEFIT.—Notwith-
standing any other provision of this subtitle, no deduction 
or credit shall be allowed for, or by reason of, any expendi-
ture to the extent of the amount excluded under sub-
section (a) for any amount which was provided with re-
spect to such expenditure. The adjusted basis of any prop-
erty shall be reduced by the amount excluded under sub-
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section (a) which was provided with respect to such prop-
erty.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for part III of subchapter B of chapter 1 of such 
Code is amended by inserting before the item relating to 
section 140 the following new item: 
‘‘Sec. 139F. Early adopter water efficient products incentive programs.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this Act shall apply to taxable years beginning after the 
date of the enactment of this Act. 
Æ 
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