,,ii  #aaith ,,congress  #b;d ,session  
,s4 #dejf  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #ac1      
#bjbf,mr4 ,lujn 7for himself and ,mrs4  
,britt7 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 allow an investment credit for 
certain water reuse projects4  #a4      
,short title ,this ,act may be cited as 
the ,advancing ,water ,reuse ,act4  #b4 
,qualifying water reuse project credit  
7a7 ,in general ,subpart ,e of part ,,iv
 of subchapter ,a of chapter #a of the  
,internal ,revenue ,code of #aihf is    
amended by inserting after section      
#dh;,e the following new section3       
#dh;,f4 ,qualifying water reuse project 
credit  7a7 ,in general ,for purposes of
 section #df1 the qualifying water reuse
 project credit for any taxable year is 
an amount equal to #cj percent of the   
qualified investment for such taxable   
year with respect to any qualifying     

water reuse project of the taxpayer4    
7b7 ,qualified investment  7#a7 ,in     
general ,for purposes of subsection 7a71
 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 project4  7#b7 ,qualified property
 ,for purposes of this subsection1 the  
term qualified property means property--
 7,a7 which is tangible property1  7,b7 
with respect to which depreciation 7or  
amortization in lieu of depreciation7 is
 allowable1 and  7,c7 which is-- 7i7    
constructed1 reconstructed1 or erected  
by the taxpayer1 or  7ii7 acquired by   
the taxpayer if the original use of such
 property commences with the taxpayer4  
7#c7 ,certain qualified progress        
expenditures rules made applicable      
,rules similar to the rules of          
subsections 7c77#d7 and 7d7 of section  
#df 7as in effect on the day before the 

enactment of the ,revenue               
,reconciliation ,act of #aiij7 shall    
apply for purposes of this section4  7c7
 ,qualifying water reuse project ,for   
purposes of this section-- 7#a7 ,in     
general ,the term qualifying water reuse
 project means a project which-- 7,a7   
installs1 replaces1 or modifies an      
onsite water recycling system within an 
industrial1 manufacturing1 data center1 
or food processing facility1  7,b7      
replaces the use of freshwater1 such as 
groundwater1 with recycled water from a 
municipal water provider for the        
production of goods or provision of     
services by the taxpayer1 or  7,c7      
builds or expands a municipal water     
recycling system for the purpose of     
securing recycled water for the         
production of goods or provision of     
services4  7#b7 ,water recycling system 
,the term water recycling system means  
infrastructure needed for the           
production1 storage1 conveyance1 and use
 of recycled water4  7#c7 ,recycled     

water ,the term recycled water means    
former wastewater1 including both       
industrial and municipal wastewater1    
that has been treated and cleaned for a 
specific beneficial use4  7d7 ,special  
rule for certain property transferred to
 utilities  7#a7 ,in general ,in the    
case of any qualified transfer property 
transferred from a person to a utility--
 7,a7 such property shall be treated as 
qualified property with respect to such 
person1  7,b7 such person shall be      
treated as having placed such property  
in service at the time of such transfer1
  7,c7 the basis of such person in such 
property which is taken into account    
under subsection 7b77#a7 shall be the   
basis of such person in such property at
 the time of such transfer1 and  7,d7   
such property shall not be taken into   
account for purposes of determining any 
credit allowed under this section to    
such utility4  7#b7 ,qualified transfer 
property ,for purposes of this          
subsection1 the term qualified transfer 

property means property transferred from
 a person to a utility if-- 7,a7 such   
property is qualified property with     
respect to such utility1 and  7,b7 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 utility4  7e7 ,termination ,this  
section shall not apply to any qualified
 investment with respect to any         
qualifying water reuse project unless   
such project is placed in service not   
later than the date which is #aj years  
after the date of the enactment of this 
section4  4  7b7 ,part of investment    
credit ,section #df of such ,code is    
amended by striking and at the end of   
paragraph 7#f71 by striking the period  
at the end of paragraph 7#g7 and        
inserting 1 and1 and by adding at the   
end the following new paragraph3  7#h7  
the qualifying water reuse project      
credit4  4  7c7 ,clerical amendment ,the

 table of sections for subpart ,d of    
part ,,iv of subchapter ,a of chapter #a
 of such ,code is amended by inserting  
after the item relating to section      
#dh;,e the following new item3  ,sec4   
#dh;,f4 ,qualifying water reuse project 
credit4  4  7d7 ,effective date ,the    
amendments made by this section shall   
apply to qualifying water reuse projects
 7as defined in section #dh;,f of the   
,internal ,revenue ,code of #aihf1 as   
added by this section7 the construction 
of which begins after the date of the   
enactment of this ,act4