Coaltion Comments on the Water Conservation Tax Parity Act Mar 10, 2016 Comment Letters To: U.S. Representatives Jared Huffman and Dan Rohrabacher Subject: CPWC Support for H.R. 4615, the Water Conservation Tax Parity Act Other coalition members: Alliance For Water Efficiency, American Water Works Association, National Association of Water Companies, National Water Resources Association, U.S. Water Alliance, Western Coalition of Arid States, Western Urban Water Coalition Letter excerpt: The CPWC supports H.R. 4615, the Water Conservation Tax Parity Act, which would treat rebates for water conservation programs the same as energy efficiency rebates under the federal tax code. The CPWC sees invaluable benefits from creating parity between water efficiency rebates, which are not addressed in the code, and energy efficiency rebates, which Congress specifically declared nontaxable in 1992. Water conservation rebates should not be treated as income, but instead, as non-taxable investments to defray upfront consumer costs for a public benefit. The simple but effective change proposed in H.R. 4615 is crucial to ensuring residents continue to participate in water conservation programs, particularly in light of the water crisis facing the western United States. The Joint Committee on Taxation found that exempting these rebates from gross income would have a “negligible” budget impact. Encouraging residents to replace water‐thirsty lawns, install “gray water” capture systems or purchase new water‐efficient appliances can provide significant water savings and improve storm water management. Download the coalition letter
