[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2940 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2940
To amend the Internal Revenue Code of 1986 to allow an investment
credit for certain water reuse projects.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 17, 2025
Mr. LaHood (for himself, Ms. Sanchez, Ms. Tenney, and Mr. Schneider)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow an investment
credit for certain water reuse projects.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Advancing Water Reuse Act''.
SEC. 2. QUALIFYING WATER REUSE PROJECT CREDIT.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48E the following new section:
``SEC. 48F. QUALIFYING WATER REUSE PROJECT CREDIT.
``(a) In General.--For purposes of section 46, the qualifying water
reuse project credit for any taxable year is an amount equal to 30
percent of the qualified investment for such taxable year with respect
to any qualifying water reuse project of the taxpayer.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment with respect to any qualifying water reuse
project for any taxable year is the basis of qualified property
placed in service by the taxpayer during such taxable year
which is part of such qualifying water reuse project.
``(2) Qualified property.--For purposes of this subsection,
the term `qualified property' means property--
``(A) which is tangible property,
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable, and
``(C) which is--
``(i) constructed, reconstructed, or
erected by the taxpayer, or
``(ii) acquired by the taxpayer if the
original use of such property commences with
the taxpayer.
``(3) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(c) Qualifying Water Reuse Project.--For purposes of this
section, the term `qualifying water reuse project' means a project
which--
``(1) installs, replaces, or modifies an onsite water
recycling system within an industrial, manufacturing, data
center, or food processing facility,
``(2) replaces the use of freshwater, such as groundwater,
with recycled water from a municipal water provider for the
production of goods or provision of services, or
``(3) builds or expands a municipal water recycling system
for the purpose of securing recycled water for the production
of goods or provision of services.
``(d) Special Rule for Certain Property Transferred to Utilities.--
``(1) In general.--In the case of any qualified transfer
property transferred from a person to a utility--
``(A) such property shall be treated as qualified
property with respect to such person,
``(B) such person shall be treated as having placed
such property in service at the time of such transfer,
``(C) the basis of such person in such property
which is taken into account under subsection (b)(1)
shall be the basis of such person in such property at
the time of such transfer, and
``(D) such property shall not be taken into account
for purposes of determining any credit allowed under
this section to such utility.
``(2) Qualified transfer property.--For purposes of this
subsection, the term `qualified transfer property' means
property transferred from a person to a utility if--
``(A) such property is qualified property with
respect to such utility, and
``(B) such person and such utility enter into a
binding written agreement under which such person is
treated as eligible for the credit allowed under this
section with respect to such property in lieu of such
utility.
``(e) Termination.--This section shall not apply to any property
the construction of which begins after December 31, 2032.''.
(b) Part of Investment Credit.--Section 46 of such Code is amended
by striking ``and'' at the end of paragraph (6), by striking the period
at the end of paragraph (7) and inserting ``, and'', and by adding at
the end the following new paragraph:
``(8) the qualifying water reuse project credit.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 48E the following new
item:
``Sec. 48F. Qualifying water reuse project credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to periods after the date of the enactment of this section under
rules similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the date of the enactment of the Revenue
Reconciliation Act of 1990).
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