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Tax on Water-Intensive Crops Grown During Droughts

This act introduces a new tax on the sale of certain water-intensive crops. The tax will apply only to crops grown by foreign corporations or governments in areas experiencing prolonged drought. The goal is to protect water resources and discourage water waste during difficult conditions.
Key points
A 300% excise tax will be imposed on the sale of specified water-intensive crops produced by foreign entities in drought-stricken areas.
The tax applies to crops grown in areas identified by the U.S. Drought Monitor as experiencing severe, extreme, or exceptional drought for over 6 months.
This tax aims to conserve domestic water resources and applies to sales made after the act's enactment date.
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Additional Information
Print number: 117_HR_9194
Sponsor: Rep. Gallego, Ruben [D-AZ-7]
Process start date: 2022-10-18