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Congress·In Committee·S. 857

Water Conservation Rebate Tax Parity Act

Water Conservation: Tax-Free Rebates

This bill is currently in the early stages of the legislative process and is being reviewed by the Senate Committee on Finance. It is actively moving forward after being introduced in the Senate. There are no upcoming votes scheduled at this time.

Legislative Progress

Senate
House
President
Law
Could go either way

This bill has strong bipartisan support from senators in Western states where water is a major issue, but tax bills often struggle to pass on their own without a larger package.

Key Points

  • This bill changes the tax code so that money you get back from your local government or utility company for saving water is not taxed as income. Right now, the law allows people to receive tax-free rebates for energy-saving upgrades, but it does not clearly protect water-saving rebates in the same way.
  • Homeowners would be able to keep the full amount of rebates they receive for things like installing water-efficient appliances, setting up rain barrels to manage storm water, or upgrading septic tanks. This ensures that a $500 rebate actually stays $500 instead of being reduced by taxes.
  • The policy is designed to encourage more people to participate in local conservation programs. By removing the tax penalty, it makes it more affordable for families to help their communities deal with droughts, heavy rains, and aging sewer systems.
  • If passed, this change would apply to any rebates received after December 31, 2021. This means people who already received these payments in the last few years might be able to benefit from the new rules.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

2 milestones2 actions
Mar 5, 2025Senate

Read twice and referred to the Committee on Finance.

Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.

Mar 5, 2025

Introduced in Senate

The bill was officially filed and given a number. It now enters the legislative queue.

Votes

No votes have been recorded for this legislation yet.

News

No related news coverage found for this legislation yet.

Source Information

Document Type

Congressional Bill

Official Title

Water Conservation Rebate Tax Parity Act

Bill NumberS 857
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.

Sponsor

Cosponsors

(6)
D: 6

Analysis generated by AI. Always verify with official sources.