Expands the federal income‑tax exclusion so people don’t have to pay income tax on certain rebates or subsidies they receive for water conservation, storm water management, or (for their main home) wastewater management. The exclusion applies when the payment comes from a public utility, a storm water management provider, or a State or local government.

The law adds clear definitions for covered measures and providers. It applies to amounts received on or after January 1, 2022, and says nothing in it should be read to decide how similar payments made before 2022 are treated.