“To amend the Internal Revenue Code of 1986 to allow an investment credit for certain water reuse projects.”
No CRS summary available for this bill.
This section establishes a new Qualifying Water Reuse Project Credit under new IRC §48F (equal to 30% of qualified investment) as part of the general business credit under §46. Qualified investment is the basis of qualified property (i.e., depreciable tangible property constructed, reconstructed, or erected by the taxpayer, or acquired with original use commencing with the taxpayer) placed in service as part of a qualifying water reuse project, with certain progress expenditure rules applying. A qualifying water reuse project is one of the following: (1) that installs, replaces, or modifies an onsite water recycling system within an industrial, manufacturing, data center, or food processing facility; (2) that replaces freshwater (e.g., groundwater) with recycled water from a municipal provider for producing goods or providing services; or (3) that builds or expands a municipal water recycling system to secure recycled water for producing goods or providing services. A special rule treats certain qualified property transferred to a utility as qualifying with respect to the transferor (rather than the utility) if the parties enter a binding agreement designating the transferor as eligible for the credit. The credit applies to property with construction beginning before January 1, 2033, for periods after enactment under rules similar to former §48(m).