[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4615 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 4615

To amend the Internal Revenue Code of 1986 to exclude from gross income 
    amounts received from a water department for water conservation 
     efficiency measures and water runoff management improvements.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 2016

Mr. Huffman (for himself and Mr. Rohrabacher) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
    amounts received from a water department for water conservation 
     efficiency measures and water runoff management improvements.

    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 Conservation Rebate Tax Parity 
Act''.

SEC. 2. EXCLUSION OF AMOUNTS RECEIVED FROM A WATER DEPARTMENT FOR WATER 
              CONSERVATION EFFICIENCY MEASURES AND WATER RUNOFF 
              MANAGEMENT IMPROVEMENTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139E the following new section:

``SEC. 139F. WATER CONSERVATION EFFICIENCY MEASURES AND WATER RUNOFF 
              MANAGEMENT IMPROVEMENTS.

    ``(a) In General.--Gross income shall not include the value of any 
water conservation and efficiency measure or water runoff management 
improvement (or any subsidy, rebate, or other amount for such a measure 
or improvement) received directly or indirectly from a water 
department.
    ``(b) Denial of Double Benefit.--Notwithstanding any other 
provision of this subtitle, no deduction or credit shall be allowed 
for, or by reason of, any expenditure to the extent of the amount 
excluded under subsection (a) for any subsidy, rebate or other amount 
which was provided with respect to such expenditure. The adjusted basis 
of any property shall be reduced by the amount excluded under 
subsection (a) which was provided with respect to such property.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Water conservation and efficiency measure.--The term 
        `water conservation and efficiency measure' means any 
        evaluation of water use, or any installation or modification of 
        property, the primary purpose of which is to reduce consumption 
        of water or to improve the management of water demand with 
        respect to one or more dwelling units.
            ``(2) Water runoff management improvement.--The term `water 
        runoff management improvement' means any installation or 
        modification of property the primary purpose of which is to 
        reduce or manage storm water runoff with respect to one or more 
        dwelling units.
            ``(3) Water department.--The term `water department' means 
        any entity (including a public or private utility, the Federal 
        Government, a State or local government or any political 
        subdivision thereof, or any instrumentality of the foregoing) 
        engaged in--
                    ``(A) the provision of water to the public through 
                pipes or other constructed conveyances, or
                    ``(B) the collection, treatment, management, or 
                disposal of stormwater or wastewater generated by the 
                public.
            ``(4) Dwelling unit.--The term `dwelling unit' has the 
        meaning given such term by section 280A(f)(1).''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139E the following new item:

``Sec. 139F. Water conservation efficiency measures and water runoff 
                            management improvements.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.
    (d) No Inference Regarding Proper Tax Treatment.--Nothing in this 
Act or the amendments made by this Act shall be construed to create any 
inference with respect to the proper tax treatment of any subsidy or 
rebate received directly or indirectly from a water department for any 
water conservation and efficiency measure or water runoff management 
improvement in any taxable year ending on or before the date of the 
enactment of this Act.
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