H.R.2940 - Advancing Water Reuse Act (119th Congress)
Summary
H.R.2940, the Advancing Water Reuse Act, proposes an amendment to the Internal Revenue Code of 1986. The amendment introduces a tax credit for investments in qualifying water reuse projects. This aims to incentivize businesses and municipalities to adopt water recycling technologies.
Expected Effects
The bill's passage would likely lead to increased investment in water reuse infrastructure. This includes systems for industrial, manufacturing, and municipal water recycling. Ultimately, it could reduce reliance on freshwater sources.
Potential Benefits
- Encourages Water Conservation: Incentivizes the adoption of water recycling technologies, reducing demand on freshwater resources.
- Supports Business Investment: Provides a tax credit, making water reuse projects more financially viable for businesses.
- Promotes Infrastructure Development: Stimulates the construction and expansion of municipal water recycling systems.
- Reduces Environmental Impact: Decreases the strain on natural water sources and ecosystems.
- Fosters Innovation: Encourages the development and deployment of advanced water treatment technologies.
Potential Disadvantages
- Potential for Taxpayer Burden: The tax credits could increase the national debt if not offset by other revenue or economic growth.
- Complexity in Implementation: Defining and verifying 'qualifying water reuse projects' could create administrative challenges.
- Risk of Inefficient Spending: Subsidies may lead to investment in projects that are not economically or environmentally sound without proper oversight.
- Limited Scope: The credit primarily benefits specific industries and municipalities, potentially overlooking other water conservation strategies.
- Sunset Clause: The termination date in 2032 may discourage long-term planning and investment beyond that timeframe.
Constitutional Alignment
The bill aligns with the General Welfare Clause (Preamble of the US Constitution) by promoting sustainable water management. Congress has the power to tax and spend for the general welfare. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).