BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Recommended Position on Federal Legislation: HR 448 (Huffman) Water Conservation Rebate Tax Parity Act.
End
RECOMMENDATION:
Recommendation
Adopt a position of "Support" on: HR 448 (Huffman) Water Conservation Rebate
Tax Parity Act.?
Body
SUMMARY:
HR 448 (Huffman) Water Conservation Rebate Tax Parity Act
Recommendation: Support
Priority Recommendation: 2
This bill amends the Internal Revenue Code of 1986 to expand the inclusion for certain
conservation subsidies to include subsidies for water conservation or efficiency
measure and storm water management measures.
Currently, any rebate issued by the Santa Clara Valley Water District (District) or other
utilities over the amount of $600 requires a 1099 Federal tax form be issued to the recipient of that rebate.
This bill clarifies that these rebates are not taxable income, but rather an effort to defray
upfront consumer costs for the public benefit.
Summary of key provisions is as follows:
* Modifications to income exclusion for conservation subsidies provided directly or
indirectly by a public utility to a customer or by a State or local government to a
resident of such State or locality, for the purchase or installation of any water
conservation or efficiency measure. As proposed, water conservation and efficiency measures include evaluation of water use, or any installation or modification of property, the primary purpose of which is to reduce consumption of water or to improve the management of water demand with respect to one or more dwelling units.
* Modifications to income exclusion for conservation subsidies provided (directly or
indirectly) by a storm water management provider to a customer, or by a State or
local government to a resident of such State or locality, for the purchase or
installation of any storm water management measure.
* Amended definitions of Water Conservation or Efficiency Measure and Storm
Water Management Measu...
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