PURE Water Act

This legislation introduces a new federal income tax credit, known as the Water Filtration Credit , to incentivize the installation of advanced water filtration systems in homes. Taxpayers can claim a credit equal to 20 percent of expenditures for a qualified system installed in their primary residence and 10 percent for a system in a secondary residence. The total credit allowed for any taxable year is capped at $2,500 , with any unused credit eligible for carryforward to subsequent years. To qualify, a water filtration system must be designed to remove at least 90 percent of lead, PFAS, and PFOAS from drinking water. The credit specifically excludes maintenance costs and replacement parts for these systems. This new credit will apply to taxable years beginning after December 31, 2024, aiming to improve water quality and public health by making advanced filtration more accessible.