AB 533 (Holden)
Income taxes: exclusion: water efficiency and storm water runoff improvement programs
California water agencies have been tasked to make water conservation a California way of life to help mitigate future droughts. This means increasing consumer rebate programs that save water year round. Assembly Bill 533 maintains the exclusion from gross income, under both the personal income tax and corporation tax laws, amounts received from any rebate, voucher, or other financial incentive issued by a local water agency for participation in a turf removal water conservation program.
An exemption is necessary to develop and expand these proven water-saving programs. While CalWEP and the Alliance for Water Efficiency, along with our partners, simultaneously work to pass a similar tax exemption bill on the federal level, AB 533 will send a strong signal from California and is an important step in the overall effort to ensure that agencies who administer these rebate programs avoid having to issue burdensome 1099 tax forms to participating customers.
AB 533 is co-sponsored by California Water Efficiency Partnership, Metropolitan Water District of Southern California and WaterNow Alliance
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