This bill amends the Internal Revenue Code of 1986 by establishing a new Qualifying Water Reuse Project Credit . This credit aims to incentivize investments in projects that promote water conservation and sustainable water management practices across various sectors. The credit provides an amount equal to 30 percent of the qualified investment for a taxable year, which includes the basis of tangible, depreciable property constructed or acquired by the taxpayer. A "qualifying water reuse project" encompasses installing or modifying onsite water recycling systems in industrial, manufacturing, data center, or food processing facilities. It also covers projects that replace freshwater use with recycled water from a municipal provider for production, or those that build or expand municipal water recycling systems for similar purposes. A special rule allows a person to claim the credit for qualified property transferred to a utility under a binding agreement, with the credit applicable to construction beginning before December 31, 2032 .