Agencies Urge Governor to Sign Bill to Reinstate Tax Exemption for Turf Replacement Rebate Programs

Published: August 25, 2022

SACRAMENTO — The Association of California Water Agencies (ACWA), California Water Efficiency Partnership (CalWEP), WaterNow Alliance and a large coalition of other associations and local water agencies are urging Gov. Gavin Newsom to sign AB 2142 (Gabriel), which would reinstate the California personal tax exemption for turf replacement rebates and help incentivize participation in these important, water saving programs.

The bill passed the Senate yesterday and is awaiting the governor’s signature. “Many water suppliers offer customer rebate programs as a proven, cost-effective tool for reducing water use and promoting water conservation as a California way of life. However, taxing water efficient rebates is a disincentive for Californians to participate in these programs,” said CalWEP Co-Executive Director Tia Fleming.

California law already permanently exempts rebates for water efficient toilets and clothes washers, as well as certain plumbing for recycled water and energy conservation, from both personal and corporate taxes. AB 2142 would reinstate the exemption for turf rebates, which expired in 2019.

“These cost-effective incentives will inspire much-needed participation throughout the current drought and are especially important for lower-income households who cannot afford to face additional tax liability,” said WaterNow Alliance Executive Director Cynthia Koehler.

ACWA Executive Director Dave Eggerton agreed, stating, “ACWA and the coalition members believe this bill is a no-brainer in making turf rebate programs more appealing to Californians who are looking for ways to reduce water use now and in the future.”

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