Referred to the House Committee on Ways and Means.
This bill creates a new federal investment tax credit (Section 48F) equal to 30% of qualified investment in certain water reuse projects. Eligible projects include onsite industrial water recycling, replacing freshwater with municipal recycled water for production, and building or expanding municipal recycling systems.
Liberal emphasizes environmental and community safeguards; conservatives emphasize fiscal cost and market distortion.
Relative to its intended legislative type, this bill establishes a clearly defined investment tax credit for qualifying water reuse projects and integrates that credit into the Internal Revenue Code with concrete statutory definitions and selected anti-duplication rules, but it omits fiscal and administrative detail that would ordinarily accompany a new tax expenditure.
This bill creates a new federal investment tax credit (Section 48F) equal to 30% of qualified investment in certain water reuse projects.
Eligible projects include onsite industrial water recycling, replacing freshwater with municipal recycled water for production, and building or expanding municipal recycling systems.
The credit applies to tangible depreciable property placed in service, allows certain progress-expenditure rules, includes a special rule for transfers to utilities, and sunsets for projects the construction of which begins after December 31, 2032.
Substantive but narrow tax incentive with practical appeal; passage hinges on committee support and inclusion in larger negotiated package, and fiscal offsets.
Relative to its intended legislative type, this bill establishes a clearly defined investment tax credit for qualifying water reuse projects and integrates that credit into the Internal Revenue Code with concrete statutory definitions and selected anti-duplication rules, but it omits fiscal and administrative detail that would ordinarily accompany a new tax expenditure.
Liberal emphasizes environmental and community safeguards; conservatives emphasize fiscal cost and market distortion.
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberal emphasizes environmental and community safeguards; conservatives emphasize fiscal cost and market distortion.
Likely cautiously supportive: applauds federal incentives to cut freshwater demand and expand reuse in industry and municipalities.
Would want stronger environmental justice, reporting, and labor safeguards, and clarity that projects produce real net water savings.
Concerned about the fiscal cost and potential that large corporations capture most benefits without community protections.
Generally favorable as a targeted, market-compatible incentive to address water scarcity and resilience in industry and municipalities.
Sees merit in the existing tax-credit structure but wants clear definitions, caps, verification, and fiscal estimates to limit abuse and uncontrolled budgetary cost.
Would seek modest guardrails and oversight to ensure effectiveness.
Likely skeptical or opposed: favors water conservation but questions a federal 30% investment tax credit that subsidizes private industry and municipal projects.
Concerned about federal spending, market distortion, and federal intervention into state/local water policy.
Would prefer state-led solutions, direct regulatory incentives, or no subsidy without offsets.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Substantive but narrow tax incentive with practical appeal; passage hinges on committee support and inclusion in larger negotiated package, and fiscal offsets.
The bill has not accumulated any surfaced votes yet.
Liberal emphasizes environmental and community safeguards; conservatives emphasize fiscal cost and market distortion.
Substantive but narrow tax incentive with practical appeal; passage hinges on committee support and inclusion in larger negotiated package,…
Relative to its intended legislative type, this bill establishes a clearly defined investment tax credit for qualifying water reuse projects and integrates that credit into the Internal Revenue Code with concrete statut…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.