Take Action: Water Conservation Rebate Tax Parity Act


Take advantage of this important opportunity to impact legislation and elevate the value of our industry with congressional decision-makers.

A top IA legislative priority, the Water Conservation Rebate Tax Parity Act (H.R. 8682), was reintroduced in the House of Representatives on June 10 by Representatives Jared Huffman, John Curtis, Judy Chu and Doug LaMalfa. This important bipartisan legislation would exclude water conservation rebates from federal taxable income, which would establish that rebates provided by municipalities or water agencies to incentivize water conservation are not subject to federal income taxes.

How you can take action to encourage water conservation

Contact your member of Congress and encourage them to cosponsor and support this important legislation. Use this link to find the contact information for representatives in your area. Download our one-page PDF outlining our support for this legislation and attach it to your email to your Member of Congress.


Products carrying the U.S. Environmental Protection Agency’s WaterSense label play a crucial role in advancing water conservation and contributing to sustainable water management practices. Many municipalities and water utilities offer rebates to encourage the installation of these water-efficient products. However, the existing federal tax code classifies these rebates as taxable income, which disincentivizes participation in water conservation programs and creates bureaucratic burdens on taxpayers and water agencies alike.

Why the IA supports this legislation

This legislation would ensure that the IRS treats water conservation rebates in the same manner as nontaxable energy conservation rebates, taking a significant step toward incentivizing individuals and businesses to adopt water-efficient practices. Passing the Water Conservation Rebate Tax Parity Act will

  • incentivize water conservation by excluding these rebates from being taxed.
  • remove red tape for consumers and local communities.
  • reduce demand on water infrastructure, saving communities money.