A bipartisan group of lawmakers have introduced the Water Conservation Rebate Tax Parity Act in the House of Representatives. Sponsored by Representatives Jared Huffman, D-California, John Curtis, R-Utah, Judy Chu, D-California, and Doug LaMalfa, R-California, the bill seeks to amend the Internal Revenue Code to expand the tax exclusion for certain water conservation subsidies.
The proposed legislation aims to include rebates for water conservation or efficiency measures under the existing tax exclusion for conservation subsidies. According to the bill, this would place water conservation rebates on par with energy conservation rebates, such as those offered for EnergyStar appliances. Rebates for purchases of smart irrigation controllers would be included.
According to the bill, the exclusion would cover rebates provided by public utilities, as well as state and local governments, for the purchase or installation of water-saving technologies. These measures are designed to reduce water consumption and enhance water efficiency.
“The Water Conservation Rebate Tax Parity Act is a vital step towards encouraging more efficient water use,” says Nathan Bowen, vice president of advocacy and public affairs at the Irrigation Association. “By expanding the tax exclusion to include these measures, we can drive greater adoption of practices that not only save water but also contribute to broader environmental benefits.”
Bowen says the bill has been a priority legislative effort for the Irrigation Association. “This bill is a testament to the industry’s proactive efforts that have led to its introduction,” he says. “Our members have consistently advocated for policies that support thoughtful water use, and this legislation reflects the importance of those efforts.”
As the bill moves through the legislative process, supporters, including the Irrigation Association, are calling on Congress to act swiftly to pass the measure and provide much-needed support for water conservation efforts nationwide.
“The Water Conservation Rebate Tax Parity Act is a pivotal measure that acknowledges the significance of water conservation in our nation’s overall sustainability efforts,” says IA CEO Natasha Rankin, MBA, CAE. “By providing equal tax treatment for water conservation rebates, this legislation encourages widespread adoption of water-efficient technologies and practices, including smart irrigation solutions, ultimately contributing to the responsible use of our water resources. We appreciate the leadership of Representatives Huffman, Curtis, Chu and LaMalfa, look forward to its introduction in the Senate, and encourage prompt consideration and passage of this legislation.”
