Sec. 6. Modifications to income exclusion for conservation subsidies
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Subsection
(a)of section 136 of the Internal Revenue Code of 1986 is amended— by striking any subsidy provided and inserting any subsidy— provided , by striking the period at the end and inserting a comma, and by adding at the end the following new paragraphs: provided (directly or indirectly) by a public utility to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any water conservation or efficiency measure, or provided (directly or indirectly) by a storm water management provider to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any storm water management measure. . Section 136(c) of the Internal Revenue Code of 1986 is amended— by striking in the heading thereof and inserting Energy conservation measure , Definitions by striking in the heading of paragraph
(1)and inserting In general , and Energy conservation measure by redesignating paragraph
(2)as paragraph
(4)and by inserting after paragraph
(1)the following: For purposes of this section, the term water conservation or efficiency measure means any evaluation of water use, or any installation or modification of property, the primary purpose of which is to reduce consumption of water or to improve the management of water demand with respect to one or more dwelling units. For purposes of this section, the term storm water management measure means any installation or modification of property primarily designed to reduce or manage amounts of storm water with respect to one or more dwelling units. . Section 136(c)(4) of such Code (as redesignated by paragraph (1)(C)) is amended by striking subparagraph
(B)and inserting the following: The term public utility means a person engaged in the sale of electricity, natural gas, or water to residential, commercial, or industrial customers for use by such customers. The term storm water management provider means a person engaged in the provision of storm water management measures to the public. For purposes of subparagraphs
(B)and (C), the term person includes the Federal Government, a State or local government or any political subdivision thereof, or any instrumentality of any of the foregoing. . The heading of section 136 of such Code is amended— by inserting after and water , and energy by striking . provided by public utilities The item relating to section 136 in the table of sections of part III of subchapter B of chapter 1 of such Code is amended— by inserting and water after energy , and by striking provided by public utilities . The amendments made by this section shall apply to taxable years beginning after the date of enactment of this section. Nothing in this section or the amendments made by this section shall be construed to create any inference with respect to the proper tax treatment of any subsidy received directly or indirectly from a public utility, a storm water management provider, or a State or local government for any water conservation measure or storm water management measure before the date of the enactment of this section.