Title: A bill to amend the Internal Revenue Code of 1986 to provide an exclusion from gross income for certain waste water management subsidies.
Policy area: Taxation

Summary:
This bill excludes from gross income, for income tax purposes, a taxpayer subsidy provided by a state or local government to a resident for the purchase or installation of any wastewater management measure intended solely for the taxpayer's principal residence.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1239 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 1239

To amend the Internal Revenue Code of 1986 to provide an exclusion from 
       gross income for certain waste water management subsidies.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 20, 2021

Mrs. Gillibrand introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide an exclusion from 
       gross income for certain waste water management subsidies.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MODIFICATIONS TO INCOME EXCLUSION FOR CERTAIN WASTE WATER 
              MANAGEMENT SUBSIDIES.

    (a) In General.--Section 136(a) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``any subsidy provided'' and inserting 
        ``any subsidy--
            ``(1) provided'',
            (2) by striking the period at the end and inserting ``, 
        or'', and
            (3) by adding at the end the following new paragraph:
            ``(2) provided (directly or indirectly) by a State or local 
        government to a resident of such State or locality for the 
        purchase or installation of any wastewater management measure, 
        but only if such measure is with respect to the taxpayer's 
        principal residence.''.
    (b) Definition of Waste Water Management Measure.--Section 136(c) 
of such Code is amended--
            (1) by striking ``Energy Conservation Measure'' in the 
        heading thereof and inserting ``Definitions'',
            (2) by striking ``In general'' in the heading of paragraph 
        (1) and inserting ``Energy conservation measure'', and
            (3) by redesignating paragraph (2) as paragraph (3) and by 
        inserting after paragraph (1) the following:
            ``(2) Wastewater management measure.--For purposes of this 
        section, the term `wastewater management measure' means any 
        installation or modification of property primarily designed to 
        manage wastewater (including septic tanks and cesspools) with 
        respect to one or more dwelling units.''.
    (c) Clerical Amendments.--
            (1) The heading for section 136 of such Code is amended--
                    (A) by inserting ``and waste water'' after 
                ``energy'', and
                    (B) by striking ``provided by public utilities''.
            (2) The item relating to section 136 in the table of 
        sections of part III of subchapter B of chapter 1 of such Code 
        is amended--
                    (A) by inserting ``and waste water'' after 
                ``energy'', and
                    (B) by striking ``provided by public utilities''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts received after December 31, 2018.
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