,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bbbg  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #i1     
#bjad ,mr4 ,udall of ,new ,mexico       
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,finance  ,a ,,bill  ,to  
amend the ,internal ,revenue ,code of   
#aihf to provide a credit for property  
certified by the ,environmental         
,protection ,agency under the           
,water,sense program4  #a4  ,short title
  ,this ,act may be cited as the ,water 
,efficiency ,improvement ,act of #bjad4 
#b4  ,credit for ,water,sense program   
property  7a7  ,in general  ,subpart ,b 
of part ,,iv of subchapter ,a of chapter
 #a of the ,internal ,revenue ,code of  
#aihf is amended by adding at the end   
the following new section3  #cj;,e4     
,water,sense program property  7a7      
,allowance of credit  ,there shall be   
allowed as a credit against the tax     
imposed by this chapter for the taxable 
year an amount equal to #cj percent of  

the amounts paid or incurred by the     
taxpayer during such taxable year for   
certified ,water,sense program property4
  7b7  ,lifetime limitation  ,the       
aggregate amount of the credits allowed 
under this section with respect to any  
taxpayer for any taxable year shall not 
exceed the excess 7if any7 of #b1jjj    
over the aggregate credits allowed under
 this section with respect to such      
taxpayer for all prior taxable years4   
7c7  ,certified ,water,sense program    
property  ,for purposes of this section1
 the term certified ,water,sense program
 property means any plumbing fixture or 
plumbing fixture fitting--  7#a7 which  
has been--  7,a7 tested by an ,american 
,national ,standards ,institute         
accredited third-party certifying body  
or laboratory in accordance with the    
,environmental ,protection ,agency's    
,water,sense program 7or an analogous   
successor program71  7,b7 certified by  
such body or laboratory as meeting the  
performance and efficiency requirements 

of such program1 and  7,c7 authorized by
 such program to use its label1 and     
7#b7 the original use of which commences
 with the taxpayer4  7d7  ,application  
with other credits  7#a7  ,business     
credit treated as part of general       
business credit  ,so much of the credit 
which would be allowed under subsection 
7a7 for any taxable year 7determined    
without regard to this subsection7 that 
is attributable to property of a        
character subject to an allowance for   
depreciation shall be treated as a      
credit listed in section #ch7;b7 for    
such taxable year 7and not allowed under
 subsection 7a774  7#b7  ,personal      
credit  ,for purposes of this title1 the
 credit allowed under subsection 7a7 for
 any taxable year 7determined after     
application of paragraph 7#a77 shall be 
treated as a credit allowable under     
subpart ,a for such taxable year4  7e7  
,special rules  ,for purposes of this   
section--  7#a7  ,aggregation rules     
,all persons treated as a single        

employer under subsection 7a7 or 7b7 of 
section #eb1 or subsection 7m7 or 7o7 of
 section #dad1 shall be treated as one  
person4  7#b7  ,basis reduction  ,for   
purposes of this subtitle1 the basis of 
any property for which a credit is      
allowable under subsection 7a7 shall be 
reduced by the amount of such credit so 
allowed 7determined without regard to   
subsection 7d774  7#c7  ,no double      
benefit  ,the amount of any deduction or
 other credit allowable under this      
chapter with respect to any property for
 which credit is allowable under        
subsection 7a7 shall be reduced by the  
amount of credit allowed under          
subsection 7a7 with respect to such     
property 7determined without regard to  
subsection 7d774  7#d7  ,property used  
outside united states not qualified  ,no
 credit shall be allowable under        
subsection 7a7 with respect to any      
property referred to in section         
#ej7;b77#a74  7f7  ,termination  ,this  
section shall not apply to any property 

placed in service after ,december #ca1  
#bjae4  4  7b7  ,conforming amendments  
7#a7 ,section #ajaf7;a7 of such ,code is
 amended by striking and at the end of  
paragraph 7#cf71 by striking the period 
at the end of paragraph 7#cg7 and       
inserting 1 and1 and by adding at the   
end the following new paragraph3  7#ch7 
to the extent provided in section       
#cj;,e7e77#b74  4  7#b7 ,the table of   
sections for subpart ,b of part ,,iv of 
subchapter ,a of chapter #a of such     
,code is amended by adding at the end   
the following new item3  ,sec4 #cj;,e4  
,water,sense program property4  4  7c7  
,effective date  ,the amendments made by
 this section shall apply to property   
placed in service after the date of the 
enactment of this ,act4