Plain Language Summary
# PURE Water Act Summary **What the Bill Would Do** The PURE Water Act would create a federal tax credit to help homeowners pay for water filtration systems. If passed, homeowners could claim a tax credit (a dollar-for-dollar reduction in taxes owed) covering 20% of the cost of a water filter in their primary home, or 10% for filters in second homes. The annual credit would be capped at $2,500 per year, though unused credits could be carried forward to future years. **Who It Affects and Key Requirements** This bill would affect U.S. homeowners interested in installing water filtration systems.
To qualify for the tax credit, the filter must remove at least 90% of three specific contaminants: lead, PFAS (industrial chemicals), and PFOA (a type of "forever chemical"). The credit is nonrefundable, meaning homeowners can only use it to reduce taxes owed, not receive money back if the credit exceeds their tax liability. **Current Status** The bill was introduced by Representative Ritchie Torres (D-NY) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House of Representatives. It remains in the early stages of the legislative process.
CRS Official Summary
Providing Useful Relief for Enhanced Water Act or the PURE Water ActThis bill establishes a new nonrefundable federal tax credit for 20% of the cost of a water filter used in a primary residence located in the United States (or 10% of the cost for a water filter used in a non-primary U.S. residence). (Limitations apply.)Under the bill, the tax credit is limited to $2,500 in a tax year. However, the bill allows the amount of the tax credit in excess of the annual maximum amount to be carried forward to the succeeding tax year.To qualify for the tax credit, the water filter must be a home water filtration system with the purpose of removing from drinking water at least 90% of (1) lead, (2) per- and polyfluoroalkyl substances that contain at least one fully fluorinated carbon atom (PFAS), and (3) perfluorooctanoic acid (PFOA).Finally, under the bill, the increase in the basis of the residence (the value of the residence for federal tax purposes) due to the water filter excludes the amount of the allowed tax credit.
Latest Action
Referred to the House Committee on Ways and Means.