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Tax-Free Rebates for Water Conservation and Stormwater Management Measures.

This law expands tax exclusions, ensuring that rebates received from utilities or local governments for installing water-saving devices or stormwater management systems are not counted as taxable income. Citizens who invest in conservation measures for their homes will keep the full value of the subsidy without paying federal taxes on it. This change applies retroactively to rebates received since January 1, 2022.
Key points
Rebates for water conservation or efficiency measures (like efficient fixtures or water use evaluations) are now excluded from taxable income.
The exclusion also covers subsidies for managing stormwater and wastewater (like septic systems) at your principal residence.
The tax benefit is retroactive, applying to amounts received starting from January 1, 2022.
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Additional Information
Print number: 118_HR_8682
Sponsor: Rep. Huffman, Jared [D-CA-2]
Process start date: 2024-06-11