PURE Water Act
Officially: “PURE Water Act” Read the full text
What it does
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1Short title
This section would let the Act be called the Providing Useful Relief for Enhanced Water Act, or the PURE Water Act.
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1. Short title This Act may be cited as the Providing Useful Relief for Enhanced Water Act or the PURE Water Act .
2Water filtration credit
This section would add a new tax credit (new Internal Revenue Code section 25F) for individuals who buy and install home water filtration systems. The credit would equal 20 percent of what a taxpayer spends on a qualified water filter for their primary residence plus 10 percent of what they spend on a qualified water filter for a non-primary (secondary) residence. The total credit for any one tax year could not exceed $2,500. If the credit a taxpayer qualifies for in a year is more than that $2,500 cap, the extra amount would carry forward and be added to the credit they could claim the next tax year. A qualified water filter would be defined as a home water filtration system designed to remove at least 90 percent of lead, PFAS, and PFOA from drinking water; costs for maintaining the system or for replacement parts would not count toward the credit. The dwelling unit (primary or secondary residence) would have to be located in the United States. PFAS would be defined as per- and polyfluoroalkyl substances containing at least one fully fluorinated carbon atom, and PFOA would be defined as perfluorooctanoic acid. If a taxpayer claims this credit for an expenditure on a property, the usual increase to that property's tax basis from the expenditure would be reduced by the amount of credit claimed. The section would also add a listing for the new credit to the Internal Revenue Code's table of sections. These changes would apply to tax years beginning after December 31, 2024.
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2. Water filtration credit (a) In general Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25E the following new section: 25F. Water filtration credit (a) Allowance of credit In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of— (1) 20 percent of qualified primary residence filtration expenditures, and (2) 10 percent of qualified non-primary residence filtration expenditures. (b) Maximum credit The credit allowed under subsection (a) for any taxable year shall not exceed $2,500. (c) Carryforward of unused credit If the credit allowable under subsection (a) exceeds the limitation imposed by subsection (b), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year. (d) Definitions For purposes of this section— (1) Qualified primary residence filtration expenditure The term qualified primary residence filtration expenditure means an expenditure for a qualified water filter for use in a dwelling unit located in the United States and used as a the primary residence of the taxpayer. (2) Qualified non-primary residence filtration expenditure The term qualified non-primary residence filtration expenditure means an expenditure for a qualified water filter for use in a dwelling unit located in the United States and used as a secondary residence of the taxpayer. (3) Qualified water filter For purposes of this section, the term qualified water filter — (A) means a home water filtration system the purpose of which is to remove at least 90 percent of lead, PFAS, and PFOAS from drinking water, and (B) does not include maintenance costs or replacement parts for such filtration system. (4) PFAS The term PFAS means per- and polyfluoroalkyl substances that contain at least one fully fluorinated carbon atom. (5) PFOA The term PFOA means perfluorooctanoic acid. (e) Basis adjustment For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed. . (b) Clerical amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25E the following new item: Sec. 25F. Water filtration credit. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2024.
Where it is
In the House.