US sensors Alex Padilla (D-CA) and Dianne Feinstein (D-CA) as well as US Representatives Jared Huffman (D-CA) and Judy Chu (D-CA) introduced tax breaks for homeowners who Water receive supply discounts to improve water protection and water runoff management.
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The Water Conservation Rebate Tax Parity Act would change federal tax law and ensure that homeowners do not pay income tax when they receive water supply rebates for conservation initiatives.
“As California continues to experience severe drought, it is important that we support homeowners who are investing in technology to reduce their water use and not penalizing them with additional federal income taxes,” said Padilla. “The Water Conservation Rebate Tax Parity Act is a simple step to reduce water usage and encourage homeowners to take the initiative to conserve our limited water supplies.”
Legislators claim the measure would make it clear that discounts are not taxable income, but rather serve to meet consumer costs for the benefit of the general public.
“We must do everything we can to combat the severe drought in California and across the west,” said Feinstein. “That’s why California gives discounts to homeowners who are working to improve the water efficiency of their homes. Unfortunately, under applicable law, homeowners must pay income tax on these discounts. That has to change so that more Californians invest in these critical water efficiency home improvements. ”
Chu said with states like California in the midst of an historic drought, it is critical that Americans get help with water-smart investments to reduce water use.
“I believe our federal tax law should encourage, not penalize, these investments,” she said. “This bill will remove the federal tax burden on water-saving discounts and help more Americans cut their water use, reduce stormwater runoff, and help states conserve water resources.”