Rep. Curtis reintroduces legislation to alleviate taxes for water-efficient homeowners

Photo: Rep. John Curtis

WASHINGTON – Representative John Curtis, who holds Utah’s 3rd Congressional District seat in the U.S. House of Representatives, has reintroduced legislation which aims to amend federal tax law, exempting homeowners from income tax on rebates from water utilities for conservation and runoff management improvements.

Reintroduced last week and cosponsored by Reps. Judy Cho (D-CA) and Doug LaMalfa (R-CA), the bill, titled the Water Conservation Rebate Tax Parity Act, would provide a monetary incentive for homeowners to conserve water.

“This legislation is crucial for Utah, ensuring that incentives for water efficiency are accessible without the burden of federal taxes,” Curtis said.

“This measure aligns with our commitment to preserving Utah’s precious water resources, encouraging residents to adopt sustainable practices that benefit both our environment and economy.”

If passed, the proposed legislation would clarify federal tax law to prevent water rebates from being included as taxable income.

Across the country, water utility companies are increasingly providing rebates and incentives to homeowners who invest in cutting their water usage, minimizing stormwater runoff, and alleviating pressure on public infrastructure.

Curtis’s proposed legislation is an attempt to encourage citizens to reduce water usage, install grey-water capture systems, or conserve water in other ways.

“As Mayor of St. George, I want to thank Rep. John Curtis for his leadership on this important bill,” said St. George Mayor Michelle Randall.

“Water conservation is vital to our future water planning. Fixing this IRS overreach is going to remove this tax penalty and allow more customers to take advantage of our grass removal rebate program.”

The amendment to federal tax laws would force the IRS to treat water conservation rebates the same way they treat energy conservation rebates, which includes insulation, Energy Star-certified windows and doors, and energy efficient appliances, all of which are not taxable.

“I’m joining Reps. Huffman, Curtis, and LaMalfa in reintroducing the Water Conservation Rebate Tax Parity Act to remove the federal tax burden on water conservation rebates, which will help more Americans reduce their water use and help states like California preserve our precious water resources,” said Cho.