NAWC Applauds Sens. Shaheen, Murkowski on Reintroduction of Bipartisan Bill to Stop Tax that Discourages Crucial Water Infrastructure Investments

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PHILADELPHIA (June 10, 2021) – US Senators Jeanne Shaheen (D-NH) and Lisa Murkowski (R-AK) on Wednesday reintroduced their bill (S.1997) to amend the Internal Revenue Code of 1986 so that Contributions in Aid of Construction (CIAC), which are made by customers to regulated water utilities for the construction or improvement of our nation’s water infrastructure, can be treated as non-taxable contributions.

The bill, originally introduced in late 2019, would also prevent the taxation of government grants to regulated water utilities, which are often made to assist with environmental remediation efforts. Making these contributions and investments tax exempt would eliminate a key economic barrier that inadvertently discourages critical water infrastructure investment. National Association of Water Companies (NAWC) President and CEO Robert F. Powelson issued the following statement in response:

“Improving, upgrading and maintaining America’s water infrastructure to ensure access to safe, reliable drinking water and wastewater services requires a threshold of investment that too many water systems have struggled or been unable to meet. These investments directly impact the health of our communities and the ability for businesses to thrive. America’s water companies are grateful for the continued support and leadership of Senators Shaheen and Murkowski in pushing this bill forward and to Senator Maggie Hassan, who has now signed on to cosponsor the bill.”

NAWC has been relentless in our advocacy to expand access to water you can trust. The fix that this bill proposes would allow America’s water companies to continue providing safe, reliable drinking water and wastewater services to customers at an affordable price by ensuring that the expansion of these services to new customers or new locations does not unfairly burden a utility’s existing customers. ”

 

Contact: Meredith Moore | meredith@nawc.com

About NAWC

National Association of Water Companies (NAWC) member companies safeguard public health and promote environmental stewardship as they serve the water and wastewater needs of nearly 73 million Americans every day. NAWC members have an exceptional record of compliance with federal and state health and environmental regulations. Ensuring this high standard of quality requires extraordinary amounts of capital investment. The 10 largest NAWC member companies collectively invest nearly $3.7 billion annually to ensure their water infrastructure is well maintained and that safe and clean drinking water is available whenever needed. Learn more about NAWC and the companies we proudly represent at www.nawc.org or follow on Twitter and LinkedIn.