Bill · S. 4506· Senate(119-S-4506)
Advancing Water Reuse Act
- Introduced
- 5/13/2026
- Last activity
- 5/13/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Ben Luján
- Cosponsors
- - 2 - 1
- Introduced
- In Committee
What this bill would do
This bill, known as the ``Advancing Water Reuse Act,'' proposes to amend the Internal Revenue Code of 1986. It seeks to create a new investment credit for certain water reuse projects. The credit would allow taxpayers to claim an amount equal to 30 percent of their qualified investment in these projects. Qualifying projects include installing or modifying onsite water recycling systems or building municipal water recycling systems. The credit applies to tangible property used for the production, storage, conveyance, and use of recycled water. This provision is intended to expire 10 years after the act's enactment.
Yes· 3 of 7
Does this better protect air, water and wildlife?+5
The bill promotes water reuse, which can reduce the depletion of freshwater resources and groundwater.
Would business owners be better off under this?+4
The bill offers a 30 percent investment credit to businesses that implement water recycling systems.
Is this likely to create jobs?+3
The investment credit for water recycling infrastructure may stimulate job growth in the construction and industrial sectors.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Investment Credit for Water Projects: Taxpayers can receive a credit equal to 30 percent of their qualified investment in a qualifying water reuse project (Section 2(a)). This provides a financial incentive for those investing in water recycling infrastructure.
-
Industrial and Manufacturing Support: The bill allows for credits for projects that install, replace, or modify onsite water recycling systems within industrial, manufacturing, data center, or food processing facilities (Section 2(c)(1)(A)). This can help these specific sectors transition to using recycled water.
-
Municipal Water Infrastructure: The credit covers projects that build or expand municipal water recycling systems to secure recycled water (Section 2(c)(1)(B)). This could benefit communities by enhancing their water recycling capabilities.
-
Utility Transfer Provisions: The bill includes a special rule where property transferred from a person to a utility can be treated as a qualified investment for the person, provided there is a binding written agreement (Section 2(d)). This allows for specific financial arrangements between private entities and utilities.
Potential Negative Impacts for People
- Time Limitation on Credits: The credit will not apply to any qualified investment unless the project is placed in service within 10 years after the date of the enactment of the section (Section 2(e)). This means the financial benefit is not permanent and will eventually expire.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Increases Job Creation+3Improves Economic Growth+2Improves Small Business Support+2Reduces Capital Gains Tax+1
- Demographic And Interest Groups
- Good For Business Owners+4Good For Farmers+2
- Environment Energy And Infrastructure
- Improves Environmental Protections+5
- 7/15/2026
- 1 Cosponsor added.
- 6/16/2026
- 1 Cosponsor added.
- 5/13/2026
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Katie BrittRepublican · Alabama
Catherine Cortez MastoDemocrat · Nevada
Mark KellyDemocrat · Arizona