RELATING TO WATER CONSERVATION.
What changed between versions
The effective date of the Act was changed from July 1, 2025, to July 1, 2050, delaying when the tax credits and rebates begin.
Eligibility for tax credits was expanded to include partnerships, S corporations, estates, and trusts, with credits determined at the entity level before distribution.
A new specific provision was added for low-income homeowners, defining them more strictly as owners residing at the property with income at or below 80% of the area median income.
Tax credit and rebate amounts were adjusted; for example, the residential tax credit remains $10,000 or 25% of cost, while the commercial tax credit is now $50,000 or 20% of cost.
The deadline for claiming the tax credit was updated to the twelfth month following the year the water system is placed in service, rather than the end of the taxable year.
A new limit was added preventing the tax credit from being carried forward for more than five years after the initial claim.
New definitions were added for 'Area median income' and 'NSF/ANSI 350-certified gray water recycling system effluent' to clarify program rules.
Several definitions were updated to use 'American National Standards Institute' instead of 'American National Standard' and to specify that atmospheric water generators must be fully NSF P343-certified starting in 2028.
