RESNET® and the Alliance for Water Efficiency have developed a policy proposal to create a federal tax credit for home builders who build WaterSense-certified homes. The proposed policy would amend section 45L of the federal tax code to include a $2,000 tax credit for builders of new WaterSense-labeled homes through 2032. There is a growing need for new housing across the United States. At the same time, water resources are being stretched thinly, and utility bills have been increasing faster than inflation in most communities. The federal government already provides tax credits for ENERGY STAR new homes under Section 45L of the tax code to transform the new home market to greater levels of energy efficiency and to ensure affordable energy bills for future homeowners. The tax credit enables builders to increase the water efficiency of their homes. This policy was articulated in the RESNET Capitol Hill visits on May 2, 2024. Water efficiency generated great interest among both the Republican and Democratic congressional offices visited. Currently, RESNET staff and the Alliance for Water Efficiency are socializing the concept to key stakeholders and will seek to recruit bipartisan sponsors of such legislation. RESNET is an Environmental Protection Agency WaterSense Home Certification Organization (HCO) and HERSH2O® is a WaterSense Approved Certification Methodology. By achieving a HERSH2O® score of 70 or less and meeting a few simple requirements, builders can label their homes as WaterSense certified. RESNET and the Alliance for Water Efficiency have developed a policy paper supporting the proposed policy. To download the policy paper, click ESTABLISHING A FEDERAL TAX CREDIT FOR NEW WATERSENSE LABELED HOMES.
