,i  #aadth ,,congress  #b;d ,session    
,h4 ,r4 #dfae  ,,in ,,the ,,house ,,of  
,,representatives  ,february #be1 #bjaf 
,mr4 ,huffman 7for himself and ,mr4     
,rohrabacher7 introduced the following  
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to exclude from gross   
income amounts received from a water    
department for water conservation       
efficiency measures and water runoff    
management improvements4  #a4 ,short    
title ,this ,act may be cited as the    
,water ,conservation ,rebate ,tax       
,parity ,act4  #b4 ,exclusion of amounts
 received from a water department for   
water conservation efficiency measures  
and water runoff management improvements
  7a7 ,in general ,part ,,iii of        
subchapter ,b of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by inserting after section      
#aci;,e the following new section3      
#aci;,f4 ,water conservation efficiency 

measures and water runoff management    
improvements  7a7 ,in general ,gross    
income shall not include the value of   
any water conservation and efficiency   
measure or water runoff management      
improvement 7or any subsidy1 rebate1 or 
other amount for such a measure or      
improvement7 received directly or       
indirectly from a water department4  7b7
 ,denial of double benefit              
,notwithstanding any other provision of 
this subtitle1 no deduction or credit   
shall be allowed for1 or by reason of1  
any expenditure to the extent of the    
amount excluded under subsection 7a7 for
 any subsidy1 rebate or other amount    
which was provided with respect to such 
expenditure4 ,the adjusted basis of any 
property shall be reduced by the amount 
excluded under subsection 7a7 which was 
provided with respect to such property4 
7c7 ,definitions ,for purposes of this  
section-- 7#a7 ,water conservation and  
efficiency measure ,the term water      
conservation and efficiency measure     

means any evaluation of water use1 or   
any installation or modification of     
property1 the primary purpose of which  
is to reduce consumption of water or to 
improve the management of water demand  
with respect to one or more dwelling    
units4  7#b7 ,water runoff management   
improvement ,the term water runoff      
management improvement means any        
installation or modification of property
 the primary purpose of which is to     
reduce or manage storm water runoff with
 respect to one or more dwelling units4 
7#c7 ,water department ,the term water  
department means any entity 7including a
 public or private utility1 the ,federal
 ,government1 a ,state or local         
government or any political subdivision 
thereof1 or any instrumentality of the  
foregoing7 engaged in--  7,a7 the       
provision of water to the public through
 pipes or other constructed conveyances1
 or  7,b7 the collection1 treatment1    
management1 or disposal of stormwater or
 wastewater generated by the public4    

7#d7 ,dwelling unit ,the term dwelling  
unit has the meaning given such term by 
section #bhj;,a7f77#a74  4  7b7         
,clerical amendment ,the table of       
sections for part ,,iii of subchapter ,b
 of chapter #a of such ,code is amended 
by inserting after the item relating to 
section #aci;,e the following new item3 
,sec4 #aci;,f4 ,water conservation      
efficiency measures and water runoff    
management improvements4  4  7c7        
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjad4  7d7 ,no inference regarding     
proper tax treatment ,nothing in this   
,act or the amendments made by this ,act
 shall be construed to create any       
inference with respect to the proper tax
 treatment of any subsidy or rebate     
received directly or indirectly from a  
water department for any water          
conservation and efficiency measure or  
water runoff management improvement in  
any taxable year ending on or before the

 date of the enactment of this ,act4