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This bill amends the Internal Revenue Code to expand tax-exempt treatment for certain subsidies related to water conservation and management. Specifically, it allows homeowners to exclude from taxable income rebates and subsidies provided by public utilities, storm water management providers, or state and local governments for water conservation measures, storm water management improvements, and wastewater management systems on their principal residences. The bill defines these terms and applies retroactively to amounts received after December 31, 2021.
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