Bills · HR 1871
IN COMMITTEE· 119TH CONGRESS
House BillHR 1871Taxation
Water Conservation Rebate Tax Parity Act
This bill makes rebates for water conservation and wastewater management tax-free for homeowners and businesses, retroactive to 2022.AI-written
INTRO MAR 5· LAST ACTION MAR 5
READING
4MIN
COSPONSORS
12BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
tl;dr
AI-writtenEnsures that rebates for water-saving appliances, storm water management, and septic system repairs are tax-free, putting them on equal footing with energy-efficiency rebates.
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenMany local governments use rebates to encourage people to save water, which is critical in states facing droughts or water shortages. However, when the IRS taxes these rebates, it effectively reduces the incentive and creates a surprise tax bill for families who thought they were just doing the right thing for the environment. By making these rebates tax-free, the bill makes it cheaper for everyone to upgrade their homes and helps cities manage their water supplies more effectively without a hidden tax penalty.
KEY PROVISIONS
4AI-extractedPROVISION 01
Excludes water conservation and efficiency rebates from federal gross income.
It ensures taxpayers don't pay income tax on money they receive from utilities for saving water.
PROVISION 02
Extends the tax-free status to storm water management and wastewater management rebates.
This covers a wider range of environmental upgrades, including rain gardens and septic tank improvements.
PROVISION 03
Applies the tax change retroactively to amounts received after December 31, 2021.
People who received rebates over the last few years could potentially benefit from this change.
PROVISION 04
Requires wastewater rebates to be for a person's main home to qualify.
This limits the tax break for septic and sewer upgrades to primary residences rather than commercial properties or vacation homes.
SPONSORSHIP
1 + 12
D· California
YRS IN OFFICE
13
BILLS LED
29
COSPONSOR BREAKDOWNBIPARTISAN · 50%
DEM 9 REP 3 IND 0
ACTION TIMELINE
2 EVENTSMAR 5
Introduced in House
MAR 5
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 1871
Congress119th
StatusIn Committee
IntroducedMar 5, 2025
Last actionMar 5, 2025
READER REACTIONS
OVERALL SENTIMENT
No reactions yet. Be the first to weigh in.
Discussion
Loading comments...
IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED MAR 5, 2025
House BillHR 1871Taxation
Water Conservation Rebate Tax Parity Act
This bill makes rebates for water conservation and wastewater management tax-free for homeowners and businesses, retroactive to 2022.AI-written
INTRODUCED MAR 5, 2025· LAST ACTION MAR 5, 2025
PASSAGE CHANCES
—%
READING
4 min
COSPONSORS
12
COMPLEXITY
Moderate
