Water Conservation Rebate Tax Parity Act

This bill makes certain home water rebates tax-free. If you get a rebate or similar payment to buy or install water‑saving devices, stormwater fixes (like flood‑prevention features), or wastewater upgrades, that money would not count as taxable income. Payments can come from your utility, a stormwater provider, or your city or state. Wastewater upgrades only qualify if they’re for your main home.

It also spells out what counts: water conservation covers water‑use checks and equipment that cuts water use or manages demand; stormwater measures include things that reduce runoff or flooding; wastewater measures include systems like septic tanks. It defines who counts as a “public utility” and a “storm water management provider.”

• Who is affected: People who receive rebates or similar payments for water conservation, stormwater, or wastewater home improvements from utilities or state/local programs.
• What changes: These payments would be tax‑free; wastewater upgrades must be at your main home.
• When: Applies to money received after December 31, 2021; it doesn’t decide how payments before 2022 were treated.