Domestic Water Protection Act of 2022
Bill: H.R.9194 | Sponsor: Rep. Gallego, Ruben (D-AZ)
Policy area: Taxation

Summary:
Domestic Water Protection Act of 2022
This bill imposes an excise tax on the sale of a water-intensive crop. The tax is 300% of the price for which the crop is sold and is paid by the manufacturer, producer, or importer of the crop.
The bill defines water-intensive crop as a crop grown in an area experiencing prolonged drought (i.e., an area experiencing severe, extreme, or exceptional drought lasting more than six months) at the time such crop is grown, and by a manufacturer, producer, or importer that is a foreign corporation or foreign government.

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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Domestic Water Protection Act of 
2022''.

SEC. 2. EXCISE TAX ON GROWTH OF CERTAIN WATER-INTENSIVE 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:

                    ``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 manufacturer, 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 consistent 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 importer 
                which is a foreign corporation or foreign government.
    ``(b) Area Experiencing Prolonged Drought.--The term `area 
experiencing prolonged drought' means an area which has been identified 
by the United States Drought Monitor as experiencing severe, extreme, 
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 resulting 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 enactment of this Act.
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