A bill to amend the Internal Revenue Code of 1986 to provide an exclusion from gross income for certain waste water management subsidies.

II 116TH CONGRESS 2D SESSION S. 4664 To amend the Internal Revenue Code of 1986 to provide an exclusion from gross income for certain waste water management subsidies. IN THE SENATE OF THE UNITED STATES SEPTEMBER 23, 2020 Mrs. GILLIBRAND (for herself and Mr. SCHUMER) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide an exclusion from gross income for certain waste water management subsidies. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. MODIFICATIONS TO INCOME EXCLUSION FOR 3 CERTAIN WASTE WATER MANAGEMENT SUB- 4 SIDIES. 5 (a) IN GENERAL.—Section 136(a) of the Internal 6 Revenue Code of 1986 is amended— 7 (1) by striking ‘‘any subsidy provided’’ and in- 8 serting ‘‘any subsidy— 9 ‘‘(1) provided’’, 10 VerDate Sep 11 2014 23:13 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4664.IS S4664 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4664 IS (2) by striking the period at the end and insert- 1 ing ‘‘, or’’, and 2 (3) by adding at the end the following new 3 paragraph: 4 ‘‘(2) provided (directly or indirectly) by a State 5 or local government to a resident of such State or 6 locality for the purchase or installation of any waste- 7 water management measure, but only if such meas- 8 ure is with respect to the taxpayer’s principal resi- 9 dence.’’. 10 (b) DEFINITION OF WASTE WATER MANAGEMENT 11 MEASURE.—Section 136(c) of such Code is amended— 12 (1) by striking ‘‘ENERGY CONSERVATION 13 MEASURE’’ in the heading thereof and inserting 14 ‘‘DEFINITIONS’’, 15 (2) by striking ‘‘IN GENERAL’’ in the heading of 16 paragraph (1) and inserting ‘‘ENERGY CONSERVA- 17 TION MEASURE’’, and 18 (3) by redesignating paragraph (2) as para- 19 graph (3) and by inserting after paragraph (1) the 20 following: 21 ‘‘(2) WASTEWATER MANAGEMENT MEASURE.— 22 For purposes of this section, the term ‘wastewater 23 management measure’ means any installation or 24 modification of property primarily designed to man- 25 VerDate Sep 11 2014 23:13 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4664.IS S4664 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4664 IS age wastewater (including septic tanks and cess- 1 pools) with respect to one or more dwelling units.’’. 2 (c) CLERICAL AMENDMENTS.— 3 (1) The heading for section 136 of such Code 4 is amended— 5 (A) by inserting ‘‘AND WASTE WATER’’ 6 after ‘‘ENERGY’’, and 7 (B) by striking ‘‘PROVIDED BY PUBLIC 8 UTILITIES’’. 9 (2) The item relating to section 136 in the table 10 of sections of part III of subchapter B of chapter 1 11 of such Code is amended— 12 (A) by inserting ‘‘and waste water’’ after 13 ‘‘energy’’, and 14 (B) by striking ‘‘provided by public utili- 15 ties’’. 16 (d) EFFECTIVE DATE.—The amendments made by 17 this section shall apply to amounts received after Decem- 18 ber 31, 2018. 19 Æ VerDate Sep 11 2014 23:13 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S4664.IS S4664 pbinns on DSKJLVW7X2PROD with BILLS