Advancing Water Reuse Act

The Advancing Water Reuse Act creates a new federal tax credit to encourage investment in water recycling infrastructure. This 30 percent credit applies to businesses and utilities that install, replace, or modify onsite water recycling systems in industrial, manufacturing, data center, or food processing facilities. Eligible projects also include those that replace freshwater with recycled municipal water or build new municipal water recycling systems. To qualify, the construction of the project must begin within ten years of the bill's enactment, and the credit is calculated based on the cost of tangible property placed in service during the taxable year.