H.R.1871 - Water Conservation Rebate Tax Parity Act (119th Congress)
Summary
H.R.1871, the Water Conservation Rebate Tax Parity Act, aims to amend the Internal Revenue Code of 1986 to expand the exclusion for certain conservation subsidies. This expansion includes subsidies for water conservation, storm water management, and wastewater management measures. The bill intends to modify Section 136 of the Internal Revenue Code to include these additional subsidies, ensuring they are not treated as taxable income.
Expected Effects
The primary effect of this bill would be to incentivize water conservation and efficiency by making rebates for related measures tax-exempt. This could lead to increased adoption of water-saving technologies and practices by homeowners and businesses. The bill also defines key terms like 'water conservation or efficiency measure' and 'storm water management measure' to provide clarity on what qualifies for the tax exclusion.
Potential Benefits
- Encourages water conservation and efficient water use.
- Reduces the financial burden on individuals investing in water-saving measures.
- Supports the adoption of storm water and wastewater management systems.
- Could lead to lower water bills for consumers.
- May reduce the strain on municipal water and wastewater infrastructure.
Potential Disadvantages
- Potential for increased complexity in tax code compliance.
- Possible revenue loss for the government due to tax exclusions.
- Risk of inefficient or wasteful spending on measures that do not provide significant water savings.
- May disproportionately benefit higher-income individuals who are more likely to invest in these measures.
- Potential for increased costs for state and local governments to administer the rebate programs.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to promote the well-being of citizens through water conservation. Congress has the power to lay and collect taxes and provide for the general welfare of the United States (Article I, Section 8). The bill falls under Congress's power to regulate taxation and spending for the benefit of the population.
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).