Advancing Water Reuse Act: H.R. 2940 Introduced in the U.S. House of Representatives
November 13, 2025
By:
Walter G. Wright
Category:
Arkansas Environmental, Energy, and Water Law
Arkansas Environmental, Energy, and Water Law
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H.R. 2940 was introduced into the United States House of Representatives.
The legislation is denominated “Advancing Water Reuse Act’’ (“Reuse Act”).
The Reuse Act provides a federal tax incentive to invest in water reuse projects.
Proponents of the Reuse Act argue that the United States water infrastructure is aging and inadequate to meet growing public and private demands for freshwater. They further argue that an increasingly important way to supplement freshwater supplies is water reuse.
Water reuse is often described as the process of intentionally capturing wastewater, stormwater, saltwater, or greywater and cleaning it as needed for a designated beneficial freshwater purpose such as industrial processes or groundwater replenishment.
The Reuse Act:
- Provides a 30% tax credit for water reuse projects.
- Is applicable to projects that:
- Install, replace, or modify an onsite water recycling system within an industrial, manufacturing, datacenter, or food processing facility;
- Replaces the use of freshwater, such as groundwater, with recyclable water from a municipal water provider for production of goods or provision of services; or
- Builds or expands a municipal water recycling system for the purpose of securing recyclable water for the production of goods or provision of services.
The Reuse Act was referred to the U.S. House of Representatives Ways and Means Committee.
A copy of the Reuse Act can be downloaded here.
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