Water Conservation Rebate Tax Parity Act

This bill expands tax exclusions for homeowners receiving rebates on water-related home improvements. It modifies IRS tax code to exclude from taxable income rebates provided by utilities, governments, or storm water providers for specific conservation measures. Key provisions include tax-free treatment for rebates covering water efficiency upgrades (like low-flow fixtures), storm water management (e.g., rain gardens), and wastewater systems (only for primary residences). The changes apply to rebates received after December 31, 2021, and clarify definitions for these measures.