This bill amends the Internal Revenue Code of 1986 to expand the types of subsidies that can be excluded from a taxpayer's gross income. Specifically, it creates a new exclusion for certain wastewater management subsidies provided by state or local governments. The legislation clarifies that these tax-free subsidies must be for the purchase or installation of a wastewater management measure with respect to the taxpayer's primary residence. A "wastewater management measure" is defined to include installations or modifications primarily designed to manage wastewater, such as septic tanks and cesspools . By making these subsidies tax-exempt, the bill aims to incentivize and reduce the financial cost for homeowners to install or upgrade essential wastewater infrastructure. The amendments will apply to amounts received after the bill's enactment date.