Tax break for home water filters targets lead and PFAS contamination
H.R. 1441 — PURE Water Act · Filed by Ritchie Torres (D-NY) · 8 cosponsors · Introduced Feb 18, 2025 · Referred to committee
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What it does
This bill creates a federal tax credit allowing homeowners to deduct 20% of the cost of installing water filtration systems in their primary residence (up to $2,500 per year) and 10% for secondary residences, provided the system removes at least 90% of lead, PFAS, and PFOA from drinking water. The credit is available immediately for 2025 tax returns and can be carried forward if unused.
Why we flagged it
The bill's operative mechanism is a direct, refundable tax credit for homeowners purchasing water filtration equipment. It is functionally a consumer subsidy for a health-protective good, not a regulatory mandate or industry carve-out.
What the text implies
- The 20% credit for primary residences and 10% for secondary residences creates a modest incentive structure favoring primary-home investment, but the differential is small and transparent.
- Basis adjustment (reduction of property basis by the credit amount) prevents double-dipping on depreciation or capital gains, a standard tax-code safeguard that is routine and appropriate.
The full analysis lists 5 implications of this text.
Who stands to gain
water filtration system manufacturers; home improvement retailers; plumbing and installation contractors