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Tax Changes: Government Contributions to Water and Sewerage Infrastructure

This bill changes tax rules for money or property received by water and sewerage companies from government entities. This aims to facilitate the financing of construction and modernization of water and sewerage infrastructure, potentially leading to better service quality and lower costs for residents.
Key points
Money or property contributed by the government for building or upgrading water and sewerage systems will be treated as capital contributions, affecting companies' tax calculations.
Water and sewerage companies will not pay tax on these contributions, provided they are used for specific infrastructure investments and are not included in the rate base for service charges.
These changes apply to contributions made after December 22, 2017, which may impact past tax filings.
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Expired
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Additional Information
Print number: 117_S_1997
Sponsor: Sen. Shaheen, Jeanne [D-NH]
Process start date: 2021-06-09
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

A bill to amend the Internal Revenue Code of 1986 to provide that certain contributions by government entities are treated as contributions to capital.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1997.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-06-09.

What are the main provisions?

Key points include:

  • Money or property contributed by the government for building or upgrading water and sewerage systems will be treated as capital contributions, affecting companies' tax calculations.
  • Water and sewerage companies will not pay tax on these contributions, provided they are used for specific infrastructure investments and are not included in the rate base for service charges.
  • These changes apply to contributions made after December 22, 2017, which may impact past tax filings.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Shaheen, Jeanne [D-NH].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Public Investments