[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1321 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1321

  To amend the Internal Revenue Code of 1986 to provide a credit for 
 property labeled under the Environmental Protection Agency WaterSense 
                                program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 23, 2009

Mr. Udall of Colorado (for himself and Mrs. Gillibrand) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide a credit for 
 property labeled under the Environmental Protection Agency WaterSense 
                                program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Accountability Tax Efficiency 
Reinvestment Act of 2009'' or as the ``WATER Act of 2009''.

SEC. 2. CREDIT FOR WATERSENSE LABELED PROPERTY.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30E. WATERSENSE LABELED PROPERTY.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 30 percent of the amounts paid or incurred by the taxpayer 
during such taxable year for certified WaterSense labeled property.
    ``(b) Lifetime Limitation.--The aggregate amount of the credits 
allowed under this section with respect to any taxpayer for any taxable 
year shall not exceed the excess (if any) of $1,500 over the aggregate 
credits allowed under this section with respect to such taxpayer for 
all prior taxable years.
    ``(c) Certified WaterSense Labeled Property.--For purposes of this 
section, the term `certified WaterSense labeled property' means any 
property--
            ``(1) which is certified by a licensed independent third 
        party as meeting specifications of the Environmental Protection 
        Agency WaterSense program, and
            ``(2) the original use of which commences with the 
        taxpayer.
    ``(d) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart A 
                for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subsection (a) for 
                any taxable year (determined after application of 
                paragraph (1)) shall not exceed the excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section and 
                        sections 23, 25D, 30, and 30D) and section 27 
                        for the taxable year.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Aggregation rules.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52, or 
        subsection (m) or (o) of section 414, shall be treated as a one 
        person.
            ``(2) Basis reduction.--For purposes of this subtitle, the 
        basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed (determined without regard to subsection (d)).
            ``(3) No double benefit.--The amount of any deduction or 
        other credit allowable under this chapter with respect to any 
        property for which credit is allowable under subsection (a) 
        shall be reduced by the amount of credit allowed under 
        subsection (a) with respect to such property (determined 
        without regard to subsection (d)).
            ``(4) Property used outside united states not qualified.--
        No credit shall be allowable under subsection (a) with respect 
        to any property referred to in section 50(b)(1).
    ``(f) Termination.--This section shall not apply to any property 
placed in service after December 31, 2010.''.
    (b) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B) of the Internal Revenue Code of 
        1986 is amended by striking ``and 30D'' and inserting ``30D, 
        and 30E''.
            (B) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``30E,'' after ``30D,''.
            (C) Section 25B(g)(2) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (D) Section 26(a)(1) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (E) Section 904(i) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (F) Section 1400C(d)(2) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (2) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(38) to the extent provided in section 30E(e)(2).''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 30E. WaterSense labeled property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
                                 <all>