,,ii  #aaeth ,,congress  #ast ,session  
,s4 #adfd  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #bh1     
#bjag,mrs4 ,feinstein 7for herself1 ,mr4
 ,heller1 ,mr4 ,bennet1 and ,mr4        
,gardner7 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 expand the exclusion for    
energy conservation subsidies provided  
by public utilities to include subsidies
 provided by public utilities and ,state
 and local governments for water        
conservation and storm water management4
  #a4 ,short title ,this ,act may be    
cited as the ,water ,conservation ,tax  
,parity ,act4  #b4 ,modifications to    
income exclusion for conservation       
subsidies  7a7 ,in general ,subsection  
7a7 of section #acf of the ,internal    
,revenue ,code of #aihf is amended--    
7#a7 by striking any subsidy provided   
and inserting any subsidy-- 7#a7        
provided  2  7#b7 by striking the period

 at the end and inserting a comma2 and  
7#c7 by adding at the end the following 
new paragraphs3  7#b7 provided 7directly
 or indirectly7 by a public utility to a
 customer1 or by a ,state or local      
government to a resident of such ,state 
or locality1 for the purchase or        
installation of any water conservation  
measure1 or  7#c7 provided 7directly or 
indirectly7 by a storm water management 
provider to a customer1 or by a ,state  
or local government to a resident of    
such ,state or locality1 for the        
purchase or installation of any storm   
water management measure4  4  7b7       
,conforming amendments  7#a7 ,definition
 of water conservation measure and storm
 water management measure ,section      
#acf7;c7 of the ,internal ,revenue ,code
 of #aihf is amended-- 7,a7 by striking 
,energy conservation measure in the     
heading thereof and inserting           
,definitions2  7,b7 by striking ,in     
general in the heading of paragraph 7#a7
 and inserting ,energy conservation     

measure2 and  7,c7 by redesignating     
paragraph 7#b7 as paragraph 7#d7 and by 
inserting after paragraph 7#a7 the      
following3  7#b7 ,water conservation    
measure ,for purposes of this section1  
the term water conservation measure     
means any installation or modification  
primarily designed to reduce consumption
 of water or to improve the management  
of water demand with respect to a       
dwelling unit4  7#c7 ,storm water       
management measure ,for purposes of this
 section1 the term storm water          
management measure means any            
installation or modification of property
 primarily designed to reduce or manage 
amounts of storm water with respect to a
 dwelling unit4  4  7#b7 ,definition of 
public utility ,section #acf7;c77#d7 of 
such ,code 7as redesignated by paragraph
 7#a77;,c77 is amended by striking      
subparagraph 7,b7 and inserting the     
following3  7,b7 ,public utility ,the   
term public utility means a person      
engaged in the sale of electricity1     

natural gas1 or water to residential1   
commercial1 or industrial customers for 
use by such customers4  7,c7 ,storm     
water management provider ,the term     
storm water management provider means a 
person engaged in the provision of storm
 water management measures to the       
public4  7,d7 ,person ,for purposes of  
subparagraphs 7,b7 and 7,c71 the term   
person includes the ,federal            
,government1 a ,state or local          
government or any political subdivision 
thereof1 or any instrumentality of any  
of the foregoing4  4  7#c7 ,clerical    
amendments  7,a7 ,the heading of section
 #acf of such ,code is amended-- 7i7 by 
inserting and water after energy2 and   
7ii7 by striking provided by public     
utilities4  7,b7 ,the item relating to  
section #acf in the table of sections of
 part ,,iii of subchapter ,b of chapter 
#a of such ,code is amended--  7i7 by   
inserting and water after energy2 and   
7ii7 by striking provided by public     
utilities4  7c7 ,effective date ,the    

amendments made by this section shall   
apply to amounts received after ,january
 #a1 #bjae4  7d7 ,no inference ,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 received  
directly or indirectly from a public    
utility1 a storm water management       
provider1 or a ,state or local          
government for any water conservation   
measure or storm water management       
measure before ,january #a1 #bjae4