H.R. 1441: Providing Useful Relief for Enhanced Water Act

This bill, titled the Providing Useful Relief for Enhanced Water Act (or the PURE Water Act), aims to create a tax credit for individuals who purchase and install certain water filtration systems in their homes. The main points of the bill are as follows:

Water Filtration Credit

• Credit for Installation: The bill allows individuals to claim a tax credit for installing qualified water filtration systems. This credit is designed to promote the use of effective water filters that can significantly reduce contaminants in drinking water.
• Percentage of Expenses: Homeowners can receive a credit equal to:
  • 20% of the qualified expenses for primary residences.
  • 10% of the qualified expenses for non-primary residences.
• Maximum Credit: The maximum credit an individual can claim within a taxable year is $2,500.
• Carryforward Option: If the credit amount exceeds the maximum limit, individuals have the option to carry the unused credit to the next taxable year.

Definitions

• Qualified Expenditures: The bill defines qualified expenditures as costs associated with purchasing and installing filtration systems that effectively remove at least 90% of lead, PFAS (per- and polyfluoroalkyl substances), and PFOA (perfluorooctanoic acid) from drinking water.
• Exclusions: The tax credit does not apply to maintenance costs or replacement parts for the filtration systems.

Effective Date

The provisions of this bill would take effect for taxable years beginning after December 31, 2024.

Relevant Companies

• PSA - Public Storage: Company may see increased demand for residential water filtration systems as homeowners may seek to filter water in storage units.
• - A. O. Smith Corporation: As a manufacturer of water filtration systems, the company could benefit from increased sales due to the new tax credit.
• WHR - Whirlpool Corporation: The company may experience heightened interest in its built-in water filtration systems in home appliances.