S.857 - Water Conservation Rebate Tax Parity Act (119th Congress)
Summary
S.857, 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 taxed as 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 changes would apply retroactively to amounts received after December 31, 2021.
Potential Benefits
- Encourages water conservation and efficient water use.
- Reduces the financial burden on individuals and businesses investing in water-saving measures.
- Promotes better storm water and wastewater management, potentially reducing environmental impacts.
- Could lead to lower water bills for consumers.
- Supports companies that provide water conservation and management services.
Potential Disadvantages
- Potential for increased government spending due to decreased tax revenue.
- Complexity in defining and verifying eligible water conservation measures for tax exclusion.
- Possible inequities if the benefits disproportionately favor certain regions or income groups.
- Risk of fraud or abuse in claiming tax exclusions for ineligible measures.
- May not significantly impact water conservation efforts without broader policy changes.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to promote responsible water management and conservation. Congress has 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 (Article I, Section 8, Clause 1). This bill modifies existing tax law, which falls under Congress's enumerated powers.
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).