S 857

This bill, the Water Conservation Rebate Tax Parity Act, amends the Internal Revenue Code to expand the tax exclusion for certain conservation subsidies. Specifically, it allows homeowners to deduct rebates or subsidies received for water conservation or efficiency measures, storm water management measures, and wastewater management measures, provided they come from public utilities, state or local governments, or storm water management providers. These measures must be for the taxpayer’s principal residence. The bill also clarifies definitions related to these terms and establishes an effective date of January 1, 2022.