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New Tax on Foreign Water-Intensive Crops During Droughts: Water Protection Fund

This Act establishes a 300% excise tax on the sale of 'water-intensive crops' if they are grown by foreign entities in U.S. areas experiencing prolonged drought. Revenue from this tax will be directed into a new Drought Trust Fund. This fund will finance expenditures to carry out the purposes of the WaterSmart Drought Response Program.
Key points
Imposes a 300% excise tax on crops sold by foreign manufacturers or producers operating in U.S. areas suffering from severe drought lasting more than 6 months.
The legal definition of a 'water-intensive crop' is based on the location (drought area) and the grower (foreign entity, such as a foreign corporation or government).
Establishes the Drought Trust Fund to use the collected revenue for the WaterSmart Drought Response Program.
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Additional Information
Print number: 118_HR_5325
Sponsor: Rep. Gallego, Ruben [D-AZ-3]
Process start date: 2023-09-01