Sec. 371. Refundable tax credit for water-harvesting systems

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Subpart C of part IV of subchapter A of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section: In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the aggregate amount paid or incurred for the purchase and installation of a qualified water-harvesting system. The amount allowed as a credit under subsection

(a)shall not exceed the excess (if any) of— $2,000, over the amount allowed as a credit under subsection

(a)for all prior taxable years. For purposes of this section, the term qualified water-harvesting system means earthworks or passive rain gardens, gutters, cisterns, tanks, and other systems that meet the guidelines developed under subsection

(d)and that are installed in the United States with respect to the principal place of abode of the taxpayer. The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall— develop guidelines for the identification and approval of qualified water-harvesting systems, and shall review and, if appropriate, update such guidelines at least once every 6 years. Such guidelines shall include the establishment and maintenance of performance criteria so that products, landscapes, and processes meet industry standards for water-efficiency and water-capture. In developing and updating guidelines under this subsection, the Secretary shall solicit public comment. The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out subsection (a). . Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36C, after 36B, . The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Water-harvesting systems. . The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.