Water Online: NAWC Applauds Bipartisan Bill To Restore Tax Treatment Of CIAC To Regulated Water Utilities
U.S. Senators Jeanne Shaheen (D-NH) and Lisa Murkowski (R-AK) today introduced a bill (S. 2942) to amend the Internal Revenue Code of 1986 to provide that certain contributions are treated as non-taxable contributions to capital. The legislation aims to prevent taxation of 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.
The bill would also prevent the taxation of government grants to regulated water utilities, which are often made to assist with environmental remediation efforts. National Association of Water Companies (NAWC) President and CEO Robert F. Powelson issued the following statement in response:
“NAWC has been relentless in our advocacy for this reform and we are very grateful for the support and leadership of Senators Shaheen and Murkowski in pushing S. 2942 forward. Reliable water infrastructure is fundamental for businesses to grow and communities to flourish. This bill will allow America’s water companies to continue to provide 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.”
Source: Water Online