Financing Lead Out of Water Act of 2023

This bill modifies tax rules to help communities replace lead pipes in drinking water systems. It clarifies that using tax-exempt bonds to replace privately-owned lead service lines connected to public water systems does not count as "private business use" under federal tax law. This change specifically affects public water systems seeking to comply with federal lead regulations by making financing these replacements easier through tax-exempt bonds. The policy change applies to bonds issued after December 31, 2023, directly enabling more efficient funding for lead pipe removal projects.