Huffman and Rohrabacher Introduce Bill to Exclude Conservation Rebates from Federal Taxes

Last week, Rep. Jared Huffman (D-CA) and Rep. Dana Rohrabacher (R-CA) introduced H.R. 4615, a measure that would exempt water efficiency rebates from federal taxes.  The legislation would also exclude water efficiency home improvements and stormwater management related upgrades from taxes.  

Although the state of California provides a tax exemption for rebates from removing thirsty turf from lawns, the federal tax code does not.  Participants who received more than $600 in rebates are being issued 1099 forms from local water utilities to count the rebate as taxable income.  Other cosponsors of H.R. 4615 include California Reps. Ami Bera, Brad Sherman, Jim Costa, and Mike Thompson.