H.R. 2711House117th Congress (2021-2023)In Committee

To amend the Internal Revenue Code of 1986 to provide an exclusion from gross income for certain wastewater management subsidies.

AI-Generated Summary

Updated February 8, 2026 at 1:54 AM UTC

The bill changes the tax code to let people exclude from their taxable income certain subsidies they receive for installing or upgrading wastewater systems at their main home. It applies to subsidies that come directly or indirectly from state or local governments. The change mainly affects homeowners who get financial help for things like septic tanks or other wastewater‑management equipment.

Key Provisions

Amends Section 136(a) to add a new category of excluded income for subsidies provided by state or local governments for wastewater management measures at a taxpayer’s principal residence
Defines “wastewater management measure” as any installation or modification primarily designed to manage wastewater (including septic tanks and cesspools) for one or more dwelling units
Updates headings and references in Section 136 to include wastewater alongside energy‑conservation measures
Specifies that the new exclusion applies to subsidies received after December 31, 2018

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 20, 2021

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HouseIntro Referral

Introduced in House

April 20, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 20, 2021

Bill Text

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Introduced in HouseIssued April 20, 2021

117th CONGRESS

1st Session

H. R. 2711

IN THE HOUSE OF REPRESENTATIVES

April 20, 2021

Mr. Suozzi (for himself, Mr. Garbarino, Miss Rice of New York, and Mr. Zeldin) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide an exclusion from gross income for certain wastewater management subsidies.

Modifications to income exclusion for certain wastewater management subsidies

(a)

In general

Section 136(a) of the Internal Revenue Code of 1986 is amended—

(1)

by striking any subsidy provided and inserting

any subsidy—

(1)

provided

(2)

by striking the period at the end and inserting , or, and

(3)

by adding at the end the following new paragraph:

(2)

provided (directly or indirectly) by a State or local government to a resident of such State or locality for the purchase or installation of any wastewater management measure, but only if such measure is with respect to the taxpayer’s principal residence.

(b)

Definition of wastewater management measure

Section 136(c) of such Code is amended—

(1)

by striking Energy conservation measure in the heading thereof and inserting Definitions,

(2)

by striking In general in the heading of paragraph (1) and inserting Energy conservation measure, and

(3)

by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following:

(2)

Wastewater management measure

For purposes of this section, the term wastewater management measure means any installation or modification of property primarily designed to manage wastewater (including septic tanks and cesspools) with respect to one or more dwelling units.

(c)

Clerical amendments

(1)

The heading for section 136 of such Code is amended—

(A)

by inserting and wastewater after energy, and

(B)

by striking provided by public utilities.

(2)

The item relating to section 136 in the table of sections of part III of subchapter B of chapter 1 of such Code is amended—

(A)

by inserting and wastewater after energy, and

(B)

by striking provided by public utilities.

(d)

Effective date

The amendments made by this section shall apply to amounts received after December 31, 2018.