What does Preamble of Advancing Water Reuse Act do?

This bill aims to amend the Internal Revenue Code of 1986 The amendment would allow an investment credit for certain water reuse projects

What does SHORT TITLE. of Advancing Water Reuse Act do?

This bill is formally titled the Advancing Water Reuse Act.

What does QUALIFYING WATER REUSE PROJECT CREDIT. of Advancing Water Reuse Act do?

This section amends the Internal Revenue Code of 1986 to establish a new tax credit, the 'Qualifying Water Reuse Project Credit.' The credit is equal to 30 percent of the qualified investment in a qualifying water reuse project. A 'qualifying water reuse project' includes installing, replacing, or modifying onsite water recycling systems within certain facilities, replacing freshwater use with recycled water, or building/expanding municipal water recycling systems. Qualified property includes tangible property with allowable depreciation that is constructed, reconstructed, or acquired by the taxpayer. A 'water recycling system' encompasses infrastructure for the production, storage, conveyance, and use of recycled water. The credit is not applicable to projects placed in service more than 10 years after the enactment of this Act. Section 46 of the Internal Revenue Code is amended to include the qualifying water reuse project credit. A special rule applies to transfers of qualified property from a person to a utility.

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Advancing Water Reuse Act

Last updated: 5/13/2026 · Introduced: 5/13/2026

Author: Ben Luján (D-NM)

TL;DR (AI)

The bill establishes a new tax credit, the Qualifying Water Reuse Project Credit, equal to 30 percent of the qualified investment in a qualifying water reuse project.
A qualifying water reuse project includes installing, replacing, or modifying onsite water recycling systems, replacing freshwater use with recycled water, or building or expanding municipal water recycling systems.
The credit is only applicable to projects placed in service within 10 years after the enactment of this Act and includes tangible property with allowable depreciation.

119th Congressin committeeHR. 2940(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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