IA applauds introduction of Water Conservation Rebate Tax Parity Act
FAIRFAX, VIRGINIA (June 10, 2024) — The Irrigation Association applauded the introduction of the Water Conservation Rebate Tax Parity Act today and commended U.S. Representatives Jared Huffman, John Curtis, Judy Chu and Doug LaMalfa for their leadership in introducing this important bipartisan legislation which would incentivize water conservation across the country, reduce bureaucratic burdens on taxpayers and save communities money.
Products carrying the U.S. Environmental Protection Agency’s WaterSense label play a crucial role in advancing water conservation and contributing to sustainable water management practices. Many municipalities and water utilities offer rebates to encourage the installation of these water-efficient products. However, the existing federal tax code classifies these rebates as taxable income, which disincentivizes participation in water conservation programs and creates bureaucratic burdens on taxpayers and water agencies alike. This legislation would ensure that the IRS treats water conservation rebates in the same manner as nontaxable energy conservation rebates, taking a significant step toward incentivizing individuals and businesses to adopt water-efficient practices.
IA CEO Natasha Rankin, MBA, CAE, expressed the IA’s support for the legislation, stating, “The Water Conservation Rebate Tax Parity Act is a pivotal measure that acknowledges the significance of water conservation in our nation’s overall sustainability efforts. By providing equal tax treatment for water conservation rebates, this legislation encourages widespread adoption of water-efficient technologies and practices, including smart irrigation solutions, ultimately contributing to the responsible use of our water resources. We appreciate the leadership of Representatives Huffman, Curtis, Chu and LaMalfa, look forward to its introduction in the Senate, and encourage prompt consideration and passage of this legislation.”