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Tax Exemption for Water Conservation and Stormwater Management Rebates

This act makes rebates received from water utilities, stormwater management providers, or local governments for installing water-saving or stormwater management measures tax-free. This means citizens investing in such solutions can expect greater savings, as these rebates will not increase their taxable income.
Key points
Rebates for installing water conservation measures (e.g., new toilets, showers) will not be counted as taxable income.
Rebates for stormwater management systems (e.g., rain barrels, rain gardens) will also be tax-exempt.
The exemption also applies to wastewater management systems (e.g., septic tanks) installed in a taxpayer's principal residence.
These changes apply to amounts received after December 31, 2018.
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Additional Information
Print number: 117_HR_4647
Sponsor: Rep. Huffman, Jared [D-CA-2]
Process start date: 2021-07-22