WateReuse Association Applauds Introduction of Industrial Water Reuse Tax Credit Bill

On April 17, Representatives Darin LaHood (R-IL), Claudia Tenney (R-NY), Linda Sanchez (D-CA), and Brad Schneider (D-IL) introduced the Advancing Water Reuse Act (H.R.2940) which aims to catalyse the use of recycled water by manufacturers, data centres and other industrial entities.

While nearly 70 percent of the planet is covered by water, only two and a half percent is freshwater, and only one percent is accessible. Industrial water use in the US is second only to agribusiness in terms of water usage and current industrial water reuse offsets only a fraction of this. The Advancing Water Reuse Act will create opportunities for businesses to expand operations and grow jobs while also protecting local water resources by establishing an Investment Tax Credit (ITC) for industrial water reuse.

The WateReuse Association commends Representatives LaHood, Tenney, Sanchez and Schneider for helping to bridge the gap between water resource management and economic expansion. Whether it’s supporting the AI revolution or boosting American manufacturing, the Advancing Water Reuse Act will help ensure that businesses have long-term, reliable water supplies and that community water resources are protected.

Bart Weiss, President of the Association

Industrial water reuse is an effective and efficient process to meet specific quality standards for an intended end use. This water can originate in the same facility that captures, treats, and reuses it, which is known as onsite reuse; or, it can be supplied through a public-private partnership by which municipalities provide treated recycled water.

Growing industry means growing demand for water. U.S. data centres, for example, are expected to consume up to 33 billion gallons of water in 2028. Hyperscale data centres alone will use as much water as 299,154 households. A single semiconductor chip manufacturing facility can use as much water as a small- to midsize city (tens of millions of gallons per day). By incentivising investments in water reuse, the Advancing Water Reuse Act will help protect water quality by limiting discharges of industrial effluent, reduce demand on freshwater supplies and catalyse business development and job growth. WateReuse looks forward to working with the bill’s champions and with the House Ways and Means Committee and Senate Finance Committee to integrate the ITC into this year’s tax legislation.

About WateReuse Association
The WateReuse Association is a trade association solely dedicated to advancing laws, policy, funding and public acceptance of recycled water. Its membership includes utilities that recycle water, businesses that support the development of recycled water projects and consumers of recycled water.