U.S. Rep. John Curtis (R-UT) on Tuesday reintroduced legislation to strengthen tax incentives for homeowners who take steps to conserve water.
With many water utilities offering rebates to homeowners who make investments to reduce their water use and reduce stormwater runoff, the bipartisan bill would amend federal tax law so that homeowners would not need to pay income tax when they receive water conservation rebates.
“This legislation is crucial for Utah, ensuring that incentives for water efficiency are accessible without the burden of federal taxes,” said Rep. Curtis, who introduced the Water Conservation Rebate Tax Parity Act, H.R. 8682, along with cosponsor U.S. Rep. Judy Chu (D-CA).
The bill would ensure that homeowners that reduce water usage by, for instance, installing grey water collection systems or by purchasing water-efficient appliances and plumbing fixtures would receive water conservation rebates with no tax penalty. Under the legislation the IRS would treat water conservation rebates in the same way as energy conservation rebates, which are not taxable.
“This measure aligns with our commitment to preserving Utah’s precious water resources, encouraging residents to adopt sustainable practices that benefit both our environment and economy,” the congressman said.
Water efficiency is becoming extremely important as large swaths of the country experience increasing droughts and a decline in water supplies.
“This bill will make investing in water efficiency easier because it eliminates an unnecessary tax on households that receive federal, state, and local incentives,” said Ron Burke, president and CEO of the Alliance for Water Efficiency.