Water Conservation Rebate Tax Parity Act

This bill amends the Internal Revenue Code of 1986 to expand the types of conservation subsidies that are excluded from a taxpayer's gross income. Currently, Section 136 allows an exclusion for energy conservation measures; this legislation extends that exclusion to include subsidies for water conservation or efficiency measures , storm water management measures , and wastewater management measures . These new exclusions apply to subsidies provided by public utilities, storm water management providers, or state and local governments to customers or residents for the purchase or installation of such measures. For wastewater management, the exclusion is limited to measures for a taxpayer's principal residence. The bill also defines these new terms and makes conforming amendments, with the changes applying to amounts received after December 31, 2021.